Railsr is reportedly close to being sold off through an insolvency process following failed talks for a takeover by African payments business Flutterwave.

City sources told Sky News that Railsr is now progressing plans to sell its regulated operations to third parties.

According to the news outlet, the Financial Conduct Authority (FCA) is monitoring the situation at Railsr as its financial difficulties continue with lower than anticipated investment.

The bank’s recent Series C funding round yielded £46 million at a valuation of around £250 million – falling well below its earlier fundraises which led co-founder Nigel Verdon to claim in 2021 that Railsr was a “near unicorn” worth almost $1 billion.

“It’s definitely not last year’s valuation,” Verdon said at the time of the Series C fundraise. “Prices have come down dramatically.”

https://www.fstech.co.uk/fst/Railsr_concludes_46m_funding_round.php

The Bank of Lithuania also recently halted the FinTech from taking on new customers, stating there was reason to suspect Railsr was “grossly and systematically violating” anti-money-laundering and terrorist-financing laws.

https://www.fstech.co.uk/fst/Railsrs_Lithuanian_subsidiary_under_investigation_for_lax_payment_protocols.php

Sky News has also reported that Alvarez & Marsal is overseeing the sale process, with insiders stating that the entire business would be sold through a solvent transaction remained a possibility, although an administration of Railsr's parent company has also been one of the options under consideration in recent days.

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