Rainforest raises $29m Series B for embedded payments

September 9, 2025 • FinTech News

Embedded payments provider Rainforest has raised $29 million in a Series B funding round. Matrix Partners and Infinity Ventures led the investment, with continued support from existing backers Accel and Tech Square Ventures. The company serves vertical software platforms with integrated payment solutions.

Founded to simplify and scale embedded payments, Rainforest has quickly become a significant player in payments infrastructure. The company’s platform enables vertical SaaS firms to integrate payments directly into their software offerings. This approach boosts user adoption while providing strong customer support. Since its $20 million Series A in 2024, Rainforest has achieved remarkable growth. The company reports more than 10x revenue increase and processes billions of dollars in transaction volume.

Expansion Plans and Product Development

The new funding will support several strategic initiatives. Rainforest plans to enhance product development and expand customer support capabilities. Additionally, the company will introduce new services specifically designed for Canadian merchants. Planned features include tap-to-phone payments, alternative payment methods, and orchestration tools. These will make scalable adoption easier for software platforms.

Rainforest’s product suite has already expanded significantly. It now includes advanced ACH payments with real-time verification and embeddable chargeback management. The platform also offers partial authorizations and a forward API for secure data sharing. These features provide comprehensive payment solutions for software companies.

Investor Confidence and Market Position

Investors recognize Rainforest’s unique role in helping vertical SaaS platforms generate new revenue through payments. Matt Brown, partner at Matrix and Rainforest board member, explained their decision to reinvest. He cited the company’s strong growth and leadership under founder Joshua Silver. Brown emphasized that embedded payments can drive substantial improvements—typically 2-5x increases in revenue and customer retention. He described this capability as a “secret weapon” for vertical SaaS firms like Shopify and Toast.

By combining advanced technology with a robust service model, Rainforest positions itself as the preferred provider for platforms scaling embedded payments. The company focuses on maximizing adoption while delivering comprehensive payment solutions. This latest funding round demonstrates growing investor confidence in Rainforest’s strategy and the broader embedded finance sector. The investment will help accelerate the company’s mission to make embedded payments more accessible and effective for software platforms across various industries.