According to Sky News, a well-known British fintech, Railsr is in discussions regarding a sale that would occur at a significant discount to an earlier funding round with other suitors, including one of Africa’s largest payments companies, Flutterwave.
Sources said that a consortium comprising a number of existing Railsr investors was also vying to acquire the company, which specializes in so-called embedded finance solutions such as banking services, credit cards, and digital wallets.
One insider even noted that there was heavy competition for the asset.
News of the rival offers for Railsr comes as expectations grow of a wave of consolidation in the fintech sector as companies struggle to access sufficient standalone funding to survive.
Formerly known as Railsbank, Railsr itself raised a bridge funding round late last year which was designed to provide enough capital to see it through to a sale. The timing and outcome of the ongoing sale process were unclear on Monday.
Although it was kept away from the public, the company raised $46 million in Series C capital last autumn, at a valuation of roughly $250 million, far less than that of an earlier fundraising.
Railsr has also raised well over $100m in equity funding, with backing from investors including Visa.