A prominent British fintech is exploring a sale just weeks after concluding a heavily discounted fundraising amid growing pressure on technology companies to consolidate.

Sky News has learnt that Railsr – formerly known as Railsbank – is working with bankers at FT Partners on a range of strategic options including an outright sale.

Sources said that while a further capital-raising was an option for the company, it looked unlikely.

Last month, Railsr announced the completion of a $46m Series C funding round, although it did not disclose that this took place at a valuation of about $250m – well below that of an earlier fundraising.

Railsr is a specialist in so-called embedded finance, and snapped up assets from the collapsed German company Wirecard.

It secured a coup earlier this year when it named Rick Haythornthwaite, the former chairman of MasterCard and Centrica, as its chairman.

In a statement issued on Tuesday, Nigel Verdon, Railsr co-founder and chief executive, said: “The market conditions over the past 12 months are driving market consolidation, as it did in the past when multiple companies came together to build what is today called PayPal.

Cost of living: Household grocery bills ‘rise by almost £40’ in a month

Primark will not increase prices further as sales reach pre-COVID levels

Tube strike given green light as union slams lack of ‘compromises’

“This is just a normal market cycle where everyone is evaluating potential partnerships, and we’re no different.

“We pioneered the highly investable category of embedded finance experiences – which is the next major transition in global financial services.”

Mr Verdon has previously claimed that the company is “transforming the finance industry in the same way that Apple did to the music industry when they created iTunes”.

It specialises in what it calls ’embedded finance experiences’, helping companies provide banking services, credit cards and digital wallets.

To date, Railsr has raised well over $100m in equity funding, with backing from investors including Visa.

Related posts:

Channel 4 is no stranger to privatisation talk – but this feels different Buyout giant CD&R weighs £5.5bn bid for grocer Morrisons Crossrail boss reveals possible date for start of services Mr Kipling maker hints at price rises ahead as it spends big to stock shelves for Christmas Two more energy suppliers collapse as pipeline delay prompts fresh gas price spike Numis reports itself to watchdog after retracting memo about THG ‘irregularities’ Return to major cities aids ‘biggest leap in house prices for 20 years’ Public finances manage January surplus despite £6.1bn interest payment hit Barclays freezes Staley share awards as he fights Epstein probe Number of pubs falls by 7,000 in a decade to lowest number on record 9 tips to reduce how much petrol or diesel you use amid record fuel prices Food costs soaring as farms are crushed by visa shortfall