Rainforest Secures $29 Million in Series B Funding to Expand Embedded Payment Solutions
ATLANTA—(BUSINESS WIRE)—September 8, 2025—
Rainforest, an innovator in embedded payment solutions tailored for software platforms, has successfully concluded an oversubscribed $29 million Series B funding round, spearheaded by Matrix Partners and Infinity Ventures, with notable participation from Accel and Tech Square Ventures. All investors previously participated in Rainforest’s Series A last year.
This fresh influx of capital elevates the company’s total funding to $57.5 million, propelling efforts in recruitment, geographical extension into Canada, and product enhancements, including tap-to-phone implementations, diverse payment methods, and fintech orchestration.
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Insight from stakeholders, including investor Jeremy Jonker of Infinity Ventures, Rainforest founder and CEO Joshua Silver, and investor Matt Brown of Matri, offers a view into the implications of this expansion.
Since the last funding round, Rainforest has experienced a meteoric revenue growth of over tenfold, supported by billions processed annually. This robust growth spans diverse sectors, from healthcare and non-profit donation management to professional services and youth sports.
Companies like Hint Health, Payground, RoadSync, QuoteMachine, d-tools, ProLine, Duesy, and Materio exemplify the nearly hundred platforms leveraging Rainforest’s payment solutions.
- Embeddable chargeback management to guide merchants through the chargeback response process
- Advanced ACH payments featuring real-time bank validation and balance checks to enhance payment reliability
- Real-time BIN lookup facilitating compliant surcharging
- Partial authorizations aimed at optimizing authorization rates, particularly in HSA/FSA transactions
- Forward API that allows platforms to share data securely with trusted third parties—without compromising token security
“Reinforcing our investment in Rainforest was an unequivocal decision following the impressive year post-Series A. Joshua Silver stands out as an exceptional leader, whose team is steadfast in delivering superior service and innovative embedded payment solutions from inception,” stated Matt Brown, Partner at Matrix and a member of the Rainforest Board.
“Embedded payments are pivotal for elite vertical software firms, akin to Shopify and Toast. Many platforms witness substantial increases in revenue and retention once they successfully integrate payment solutions. However, the path to success with payments is increasingly fraught with challenges related to adoption, making technologies like Rainforest vital for maximizing payments revenue.”
Market Trends and Growing Opportunities
As noted by UBS, small and medium-sized businesses (SMBs) account for 25-30% of the United States’ payment volume, yet significantly represent over 70% of net revenues. This segment of merchant acquiring revenue handled via SaaS platforms is projected to rise from 33% in 2024 to 46% by 2029, as SMBs increasingly shift from traditional processors.
Bain & Company anticipates that embedded payments will exceed $7 trillion in total U.S. financial transactions by 2026, highlighting a burgeoning opportunity for SaaS platforms to capture SMB processing revenue.
Rainforest enables vertical software firms to seamlessly integrate payments into their platforms, enhancing revenue, retention, and overall enterprise value. As demand escalates, vertical software providers seek reliable payment partners to mitigate the significant challenges associated with embedded payments:
- Merchants with legitimate accounts frequently face rejection while fraudulent entities evade detection, shifting liability onto the software provider
- Lack of insight into the merchant onboarding progress and requirements
- Inconsistent or outdated payment data that fails to comply with current regulations
- Routine operational errands that escalate to the payment provider
- Discrepancies in merchant deposits often appear late or short without clarification
- Prolonged response times from payment providers, exacerbated by withheld merchant deposits
- Restricted access to critical data required for calculating true payment processing costs and profitability
Rainforest equips clients with a comprehensive, modern technology framework and specialized expertise designed to meet all payment-related demands, thereby fostering growth, enhancing retention, and managing risk effectively.
Rainforest’s dedication to embedded payment solutions diverges sharply from competitors, including Stripe Connect and Adyen Platforms, which were initially tailored for individual merchants before being adapted for software platforms.
“Our growth trajectory mirrors the triumphs of our clients—many depend on Rainforest for over 50% of their revenue, a distinction that carries both honor and responsibility. Throughout my two decades in payment technology, I have never been more assured of our capability to fulfill the demands for functionality, security, visibility, consistency, and reliability,” stated Joshua Silver, founder and CEO of Rainforest.
“The growing demand is indicative of vertical software firms requiring an embedded payments solution tailored to their specific needs. We’ve secured significant clients previously with Stripe, processing billions. This new financing will be pivotal in amplifying our momentum and enriching our platform’s features, allowing our clients to optimize their payment revenue.”
By leveraging Rainforest’s specifically designed technology, unparalleled service, and established methodologies, software platforms are witnessing tangible results, including:
- Margin growth from 21 to 54 basis points
- Over 1600 merchants migrated within a matter of weeks
- A 16% surge in card volume facilitated by user interface enhancements
- HSA/FSA authorization rates soaring from below 30% to 94%
- 90% diminution in chargebacks attributed to fraud
“One of the principal hurdles facing vertical SaaS providers is migrating payment volumes to new vendors—a challenge that may prolong for years for some,” remarked Jeremy Jonker, Co-Founder and Managing Partner at Infinity Ventures.
“Rainforest excels in facilitating its platform clients’ transition of hundreds of millions in mere weeks or months. Their structured playbook has proven effective across diverse sectors, including healthcare and non-profits. We did not hesitate to lead this investment, confident in their capacity to deliver high-quality solutions and services at scale.”
“Rainforest transcends the conventional role of a technology provider; they genuinely integrate as an extension of our team,” asserted Zak Holdsworth, CEO of Hint Health.
“From overarching migration strategies to intricate technical details and daily support, the Rainforest team collaborates closely with us to ensure we realize our objective—a profitable, high-caliber embedded payments solution where we maintain ownership of our data and customer relationships, all while facilitating a seamless transition for our clients. Rainforest is an invaluable partner.”
Team Growth Initiatives
Since the Series A funding, Rainforest has strategically augmented its workforce to bolster the next growth phase. Key leadership members overseeing go-to-market strategies, human resources, and legal affairs have joined the team.
In a commitment to innovation, Rainforest has doubled its engineering personnel and significantly increased its platform experience team, appointing new leads in Payment Operations and Risk Management to emphasize customer service as a core value.
This hybrid team has achieved recognition as a Built In 2025 Best Place to Work. The latest Series B funding will further enhance team expansion aimed at benefiting both current and prospective platforms.
Rainforest serves as a payment facilitator, enabling software platforms to construct and optimize integrated financial services. The company empowers software platforms to deliver exceptional payment experiences for their end merchants without the compliance, economic, and operational risks typically associated with registering as a payment facilitator with card networks.
Rainforest offers low-code integration solutions, true merchant portability, transparent pricing, and flexible contract terms under a no-risk model. Recognized as Venture Atlanta’s 2023 Emerging Startup of the Year, The Information’s Top 50 Most Promising Startups for 2024, and Global Financial Market Review’s Best Payment Technology Innovation in the USA for 2025, Rainforest’s achievements are noteworthy.
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