Polish FinTech offering revenue-based financing to e-commerce companies Booste is planning to launch in London after raising €12m (£10m) in a fresh funding round.
The Series A funding round, led by Polish fintech investor DialCom24, comes just four months after the company announced its launch and initial seed round in January.
Booste will use the cash injection to fund expansion to the UK, as well as Ireland and the Netherlands.
The startup, which was co-founded by former Uber Eats executive Jakub Pietraszek and former co-founder TiqDiet Michael Kacprzak, provides e-commerce firms with funding to finance growth through digital ads on Facebook and Google, marketing campaigns and inventory spend.
Booste charges a flat fee and can provide funding within two days. It is available to businesses that have been operating for at least six months and that sell through integrated platforms such as Shopify.
The company is one of a growing number of FinTechs offering revenue-based financing (RBF) — a financial tool that has risen rapidly in popularity thanks in part to the pandemic. Booste aims to tap into the ever-growing revenue-based finance market, which is expected to hit $42.3bn in value by 2027 as more and more startups seek alternatives to VC funding and traditional bank loans.
Instead of a traditional bank loan, which requires credit checks and guarantees, or venture capital that leads to equity loss, RBF allows businesses to access funding quickly and pay it back depending on their revenue income.
The firm noted that while UK businesses are already familiar with revenue-based finance, the market is far from being oversaturated with regard to the financing needs of small and medium e-commerce businesses.
Pietraszek said, “The past year has seen a surge in e-commerce businesses launching with more people shopping online than ever before. But this means the competition is much harder too.
“Booste allows e-commerce business owners to cut through the noise by offering funds they can access and use to grow on their own terms. We’re excited to expand Booste to more businesses across Europe thanks to this funding.”
The revenue-based lending sector is indeed heating up, with two other lenders Uncapped and Outfund having raised $80m and £37m respectively in the last few months.
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