Israeli fintech company Rapyd is laying off dozens of people

Israeli fintech company Rapyd is set to lay off dozens of employees in the coming months, with some managers at various levels notified earlier this week that their teams were being shut down or downsized. After several big acquisitions, the Tel Aviv-based digital payments platform is shrinking after consolidating operations.

Rapyd said, “Rapyd has acquired two companies with approximately 300 employees worldwide this year, and the completion of one of the acquisitions, the Icelandic company Valitor, was delayed by 12 months, for example, due to regulatory approvals received by Iceland in Europe). Now. Following the completion of the merger with Valitor, company management is now It is working on plans for 2023 and 2024 and the company is exploring workforce reductions.”

Rapyd bought Valitor from a local Icelandic bank for $100 million in July 2021 to strengthen its operations in countries such as the UK, Ireland and Iceland. According to estimates, the acquisition increased annual revenue by $100-150 million.

Rapyd has developed a digital payment platform that competes with Stripe and PayPal and allows small, medium and large businesses to receive payments from a total of 70 possible channels through PayPal, from 200 channels. These channels include banks, credit card companies, digital wallets and other payment firms.

Rapyd has extensive operations in Asia, Europe and the Arab world, including a large office in Dubai that opened earlier this year and employs over 100 people. In Tel Aviv, Rapyd has leased 27,500 square meters of space in a triangular tower and a spiral tower under construction from the Azrieli Group. The five-year lease is worth NIS 250 million.

Rapyd has raised $806 million to date and was valued at $8.75 billion in its most recent funding round in August 2021, making it one of Israel’s most valuable private technology companies. According to PitchBook, SoftBank sold its stake in the company to an undisclosed buyer earlier this year, likely due to the fund’s losses over the past year.

Last year, Rapyd became a symbol of the success and prosperity of Israel’s fast-growing tech startups, entertaining its employees at lavish parties.

Globes, Israel business news – Posted by on November 22, 2022.

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