Rainforest, an Atlanta-based embedded payment provider for software platforms, announced a $29 million Series B funding round led by Matrix Partners and Infinity Ventures, with participation from Accel and Tech Square Ventures. This follows a $20M Series A in June 2024, bringing total funding to $57.5M. The capital will drive hiring, expansion into Canada, and product enhancements like tap-to-phone and alternative payment methods, supporting platforms processing billions in annual payments.
Funding: $29M Series B, led by Matrix Partners and Infinity Ventures, with Accel and Tech Square Ventures.
Total Raised: $57.5M since 2022 inception.
Growth: 10x year-over-year revenue increase, processing billions in payment volume.
Clients: Nearly 100 platforms, including Hint Health, Payground, RoadSync, and QuoteMachine.
Product Enhancements: Embeddable chargeback management, advanced ACH, real-time BIN lookup, partial authorizations, Forward API.
Market Opportunity: Embedded payments projected to exceed $7T in U.S. transactions by 2026 (Bain & Company).
Rainforest’s platform, purpose-built for vertical SaaS, addresses pain points like merchant onboarding, fraud, and data visibility, outperforming competitors like Stripe Connect and Adyen Platforms, which were retrofitted from merchant-focused solutions. Key features include:
Chargeback Management: Guides merchants through disputes.
Advanced ACH: Real-time bank validation reduces failed payments.
Real-Time BIN Lookup: Supports compliant surcharging.
Partial Authorizations: Boosts HSA/FSA auth rates from <30% to 94%.
Forward API: Enables secure data sharing without token exports.
Since its Series A, Rainforest achieved:
Revenue Growth: 10x year-over-year, driven by billions in processing volume.
Client Wins: Migrated 1600+ merchants in weeks, increased card volume by 16%, and reduced chargebacks by 90%.
Team Expansion: Doubled engineering and platform experience teams, recognized as a Built In 2025 Best Place to Work.
“Rainforest is a true partner,” said Zak Holdsworth, CEO of Hint Health. “They ensure a profitable, high-quality embedded payments product while making the transition seamless.”
Per UBS, SMBs account for 25-30% of U.S. payment volume but 70% of net revenues, with SaaS platforms’ share of SMB merchant acquiring rising from 33% in 2024 to 46% by 2029. Rainforest’s focus on vertical SaaS taps into this $7T embedded payments opportunity by 2026. Posts on X highlight Rainforest’s edge in healthcare and nonprofit sectors, though some note integration challenges for smaller platforms.
Founded in 2022 by Joshua Silver, Rainforest provides low-code, no-risk embedded payment solutions for vertical SaaS platforms, enhancing revenue and retention. Recognized as Venture Atlanta’s 2023 Emerging Startup, The Information’s Top 50 Most Promising Startups 2024, and Global Financial Market Review’s Best Payment Technology Innovation USA 2025, it serves nearly 100 platforms.
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