Raylo, a London-based subscription payment platform, has raised €7.5m.
According to a report by EU Startups, the round included a strategic investment from Wayra UK, as well as existing investors Octopus Ventures and Macquarie.
Raylo’s mission it to make products more accessible in a way that’s better for consumers, better for business and better for the environment.
The company’s platform can stand alone or sit alongside a merchants traditional buy now, pay later (BNPL) options.
Raylo Pay adds a subscription option to a merchants’ checkout, the merchant gets paid upfront by the company, and Raylo collects the monthly subscription from the consumers, hence carrying the risk.
This method, according to the company, is ideally suited to larger ticket items. Whereas the more well-known BNPL model, whereby consumers usually pay in three installments, offered by the likes of Klarna and Zilch are most popular for small and mid-sized purchased in fashion and beauty retailers.
Raylo said off the back of its recent growth, it is partnering with select UK retailers.
Bruno Moraes, managing director of Wayra UK, said, “There is a clear shift in consumer behaviour and their preference for subscription-based payment models. There’s an appetite for more affordable options to purchase great technology and devices. The Raylo team has proven success in delivering on this consumer trend, and we look forward to helping them scale up their platform through our strategic resources and networks.”
B2B buy now pay later platform Playter recently collected $55m in funding, which was mixed with debt and equity.
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