London-based fintech company, Raylo has secured a £110 million debt financing facility from NatWest and Quilam Capital to drive its business expansion.
Founded in 2019, Raylo provides consumers with “affordable” access to high-value tech products on a monthly subscription basis. It also offers Raylo Pay, a checkout integration for merchants.
With the new funding facility, Raylo plans to grow both its direct-to-consumer channel as well as its Raylo Pay offering. It claims the number of retailers using Raylo Pay has grown 10x in the last six months.
The firm will also put some of the cash towards building out its infrastructure with the intention to tap into the securitisation markets in the future.
Karl Gilbert, co-founder and CEO of Raylo, says the company aims to provide customers “with affordable and sustainable access to the tech products they really want”.
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Raylo says its use of AI and open banking data enables it to reach more customers and achieve strong credit approval rates. It claims a 100% year-on-year growth in its subscriber base owing to “persistently” high UK inflation leading to higher demand for affordable tech.
The fintech start-up has raised over £150 million to date from a number of existing equity investors including Octopus Ventures, Macquarie Bank and Telefónica.
Raylo has also received B-Corp status thanks to its circular model, which helps to drive down e-waste. The firm claims “50% of emissions can be saved by extending the life of existing products and avoiding unnecessary overproduction of new products”.
