Rainforest, a payments company focused on vertical SaaS platforms, has closed an oversubscribed $29 million Series B funding round. Matrix Partners and Infinity Ventures co-led the investment, with participation from Accel and Tech Square Ventures. All investors had previously backed the company's Series A round last year.
The fresh capital brings Rainforest's total funding to $57.5 million. The company plans to use the money for team expansion, geographic growth into Canada, and developing new features like tap-to-phone payments and alternative payment methods.
The embedded payments market is experiencing rapid expansion as small and medium businesses move away from traditional processors. UBS data shows SMBs represent 25-30% of U.S. payment volume but generate at least 70% of net revenues. The portion of SMB merchant acquiring revenue processed through SaaS platforms is projected to jump from 33% in 2024 to 46% by 2029.
"Doubling down on our commitment to Rainforest was a no-brainer. They delivered even more growth than expected in the year following their Series A," said Matt Brown, Partner at Matrix and Rainforest Board member. "Joshua Silver is a remarkable founder-leader who, along with his team, has been laser-focused on delivering superior service and modern embedded payments from day one."
Bain & Company projects embedded payments will exceed $7 trillion of total U.S. financial transactions by 2026.
Since its previous funding round, Rainforest grew revenue by more than 10 times. The company now works with nearly 100 software platforms processing billions of dollars annually. Customers span healthcare, nonprofit donation management, professional services, and youth sports sectors.
Notable clients include Hint Health, Payground, RoadSync, QuoteMachine, d-tools, ProLine, Duesy, and Materio. The company has also introduced several product improvements to help platforms increase payment adoption and volume.
Recent enhancements include embeddable chargeback management tools, advanced ACH payments with real-time bank validation, and partial authorizations that boost approval rates for HSA/FSA payments.
Rainforest differentiates itself by building specifically for software platforms rather than retrofitting merchant-focused solutions. The company addresses common embedded payment challenges that frustrate vertical software companies.
These problems include legitimate merchants getting rejected while fraudsters pass through screening, lack of visibility in merchant onboarding processes, and inconsistent payment data. Software companies also struggle with routine tasks escalating to payment providers and unexplained delays in merchant deposits.
"Our growth reflects our customers' success – many of them rely on Rainforest to generate 50% or more of their revenue, which is both an extreme honor and responsibility," said Joshua Silver, founder and CEO of Rainforest. "In my twenty years of experience in payment technology, I have never felt more confident about the ability to deliver on the wishlist of functionality, security, visibility, consistency and reliability."
Rainforest customers see measurable improvements after implementation. One platform increased margins from 21 to 54 basis points. Another migrated over 1,600 merchants in just a few weeks. UI optimizations helped one client achieve a 16% increase in card volume.
The company boosted HSA/FSA authorization rates from under 30% to 94% for healthcare platforms. Fraud prevention measures led to a 90% reduction in chargebacks for affected clients.
"One of the biggest challenges vertical SaaS companies face is the ability to migrate payment volume to a new provider and some companies struggle for years," said Jeremy Jonker, Co-Founder and Managing Partner at Infinity Ventures. "This is exactly where Rainforest shines, helping their platform clients move hundreds of millions of dollars in just a few weeks or months."
Rainforest has expanded strategically since its Series A round. The company welcomed key leadership in go-to-market, people operations, and legal functions. The engineering team doubled in size to accelerate product development.
Customer service remains central to operations, with the platform experience team more than doubling. New team leaders joined payment operations and risk management divisions. Built In recognized Rainforest as a 2025 Best Places to Work recipient.
"Rainforest is so much more than a technology company, they're an extension of our team," said Zak Holdsworth, CEO of Hint Health. "From high-level migration strategy to specific messaging, technical details, and day-to-day support, the Rainforest team works closely with us to make sure we get the desired outcome."
The Series B round included participation from all previous investors, demonstrating continued confidence in Rainforest's approach. Matrix Partners and Infinity Ventures co-led the investment, with Accel and Tech Square Ventures joining as participants.
The company has earned industry recognition beyond investor backing. Awards include Venture Atlanta's 2023 Emerging Startup of the Year, inclusion in The Information's Top 50 Most Promising Startups for 2024, and Global Financial Market Review's Best Payment Technology Innovation USA 2025.
