Raylo, which provides UK consumers with access to tech products through subscription, has received £110m in debt financing from NatWest bank and Quilam Capital.
The funds will allow the company to expand its platform and extend the reach of its services to more customers. It hopes to expand its direct-to-consumer channel and its checkout integration for merchants, Raylo Pay.
Rayo offers access to high-value tech products on monthly subscriptions.
This funding comes after a strong period of growth for Raylo. The FinTech has experienced over 100% year-on-year growth. It hopes to continue this growth rate during the cost-of-living crisis as it believes consumers will seek products at low monthly subscription costs.
In addition to the funding, Raylo announced its BCORP status, which it claims is part of its mission to accelerate the circular economy in consumer electronics and other categories of durable goods.
As part of this mission, products on subscription are returned to Raylo, refurbished and reused across multiple users over six or more years. Once the lifecycle of the product comes to an end, the item is sustainably recycled.
NatWest senior director Milena Sheahan said, “We are delighted to have been able to support Raylo’s future growth ambitions with this new financing facility. The business’ commitment to changing the way consumer electronics are sold and enjoyed is extremely well aligned with NatWest’s ESG objectives and passion for innovation and disruptive technologies.
“Raylo is a progressive, forward-thinking business, with a solid platform to positively influence consumer behaviour and attitude towards use of technology in the future. We are proud to have Rayo join us as a valued client within NatWest’s Speciality Finance customer franchise.”
The FinTech has raised over £150m to date. It previously secured €7.5m in an investment in July 2022 from Octopus Ventures, Wayra UK and Macquarie.
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