The purpose-built solution has grown alongside its customers, handling billions in annual payment volume and achieving 10x revenue growth year over year.
Matrix Partners and Infinity Ventures lead the round, with participation from Accel and Tech Square Ventures
Rainforest, an embedded payment provider purpose-built for software platforms, has announced the successful close of an oversubscribed $29 million Series B funding round, led by Matrix Partners and Infinity Ventures, with continued support from Accel and Tech Square Ventures. All investors had participated in Rainforest’s Series A last year. This latest round brings the company’s total funding to $57.5 million and will fuel hiring, expansion into Canada, and product development, including features such as tap-to-phone payments, alternative payment methods, and fintech orchestration.
Financial Technology Insights: Pennymac Taps Vesta to Elevate Mortgage Origination Tech
Since the previous funding round, Rainforest has experienced explosive growth, increasing revenue more than tenfold, driven by billions in annual processing volume. The platform has seen strong adoption across industries from healthcare and non-profit donation management to professional services and youth sports serving nearly a hundred software platforms including Hint Health, Payground, RoadSync, QuoteMachine, D-tools, ProLine, Duesy, and Materio. Rainforest has also advanced its product to help software platforms maximize payments adoption, volume, and revenue, with features that simplify complex processes such as chargeback management, advanced ACH payments with real-time validation, real-time BIN lookups for compliant surcharging, partial authorizations to boost HSA and FSA payment success, and a forward API enabling secure data sharing without exporting tokens.
Investors have been impressed by Rainforest’s remarkable growth and leadership. Matt Brown, Partner at Matrix and Rainforest Board member, highlighted Joshua Silver’s vision and the team’s laser focus on delivering modern embedded payments and superior service. Brown emphasized that embedded payments have become a key growth driver for vertical software companies, significantly increasing revenue, retention, and other metrics when executed successfully. Rainforest provides the technology, expertise, and proven playbook that allow platform clients to maximize adoption and revenue, setting them apart from providers retrofitted for software platforms.
Financial Technology Insights: iCapital Invests in Tangible Markets for Liquidity Solutions
The opportunity for embedded payments is expanding rapidly. SMBs account for 25–30% of U.S. payment volume but at least 70% of net revenues, with the portion of SMB merchant acquiring revenue processed through SaaS platforms expected to rise from 33% in 2024 to 46% by 2029. Bain & Company projects embedded payments will exceed $7 trillion in U.S. transactions by 2026. Rainforest helps vertical software companies seize this growing opportunity by providing a single, purpose-built platform that addresses key pain points, including merchant onboarding challenges, inconsistent payment data, operational bottlenecks, and delayed responses from traditional payment providers.
Joshua Silver, founder and CEO of Rainforest, said the company’s growth reflects its customers’ success, many of whom rely on Rainforest for 50% or more of their revenue. He emphasized the company’s commitment to delivering functionality, security, visibility, and reliability specifically designed for vertical software platforms. The new investment will allow Rainforest to continue building on its momentum, enhancing its platform and helping customers maximize payment revenue.
Financial Technology Insights: Vergent LMS Welcomes Jeremy Johnson as Sales Representative
The results speak for themselves. Rainforest’s purpose-built technology and expert service have enabled platforms to migrate thousands of merchants quickly, increase card volume, dramatically improve HSA and FSA authorization rates, and reduce fraud-related chargebacks by 90%. Industry leaders such as Jeremy Jonker of Infinity Ventures and Zak Holdsworth, CEO of Hint Health, have praised Rainforest not just as a technology provider, but as a true partner—guiding strategy, providing day-to-day support, and ensuring that embedded payments implementations are seamless, profitable, and fully under the control of their software platform clients. Rainforest’s combination of modern technology, high-touch service, and deep industry expertise continues to position it as the go-to embedded payments solution for vertical software companies.
To share your insights with the FinTech Newsroom, please write to us at sudipto@intentamplify.com