Embedded finance start-up Railsr has announced $24 million in funding.

The company’s chief executive Philippe Morel said that the new investment was secured in a “much tougher” fundraising environment, adding that the move means it is “very well placed to grow sustainably”.

“It has been a very challenging period for the sector,” said Morel. “Many companies grew too fast, failing to adequately develop internal controls, and then had to scale back quickly in a difficult economic environment.”

He continued: “As a UK pioneer, we were one of the first to face these challenges, but we are now also well positioned to be one of the first to come through this period. We have a proven product and business model, which is operating in a sector with much higher barriers to entry due to a tougher.”

In March, the London-based FinTech announced a sale to a shareholder consortium in a move which was described as a ‘rescue deal’.

While the business, formerly trading under the name Railsbank, was once valued at nearly $1 billion.

However, a failed sale to pan-African financial services company Flutterwave and subsequent failed attempts to find a buyer combined with its purchase of collapsed German FinTech Wirecard's UK client base in 2020 left Railsr facing the prospect of going out of business.

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