HomeFundingUK-based fintech Raylo lands €124 million as demand for tech on subscription...

UK-based fintech Raylo lands €124 million as demand for tech on subscription ramps up

London-based Raylo has just raised over €124 million to fuel a circular, subscription-based approach to tech products. The fintech startup has also earned itself B-Corp certification for its more sustainable approach to tech ownership. 

When it comes to consumer goods, there are two defining trends that stand out at the moment: sustainability and affordability. It comes as we grapple with the ever-present climate and environmental crisis alongside the escalating cost-of-living crisis. As a result, society is transitioning towards more circular approaches and subscription-based marketplaces are on the rise. 

Raylo, a London-based fintech, is reimaging payment options in a way that enables people to get access to the tech they need in a sustainable way. The firm has now earned itself B-Corp certification and raised fresh funds to expand. 

Funding details

  • About €124.9 million was raised in a debt financing facility
  • NatWest Bank and Quilam Capital led the round
  • The startup has raised over €170 million to date with backing from Octopus Ventures, Macquarie Bank and Telefónica

Aiming to lead the change in how products are sold and enjoyed, Raylo has developed a platform that enables companies to embed a subscription model into payment processes. It means that consumers can access the tech they want, in a financially and environmentally responsible and sustainable way. The startup, therefore, democratises access to premium tech products and does so whilst mitigating the environmental consequences.

Richard Fulton, co-founder and CSO at Raylo: “Raylo is solving a real problem for consumers, who are increasingly looking for more affordable and sustainable ways to access the latest technology. We are confident that Raylo’s innovative approach and use of technology will continue to drive strong growth and success in the future.”

Founded in 2019, Raylo addresses very current issues and addresses the increasing ​​demand for more flexible ways to pay. By adopting Raylo Pay, retailers can add a new subscription revenue stream that increases customer conversion, while offering a more affordable and sustainable option at checkout.

Retailers are paid upfront and in full (zero fees) for any purchases, whilst consumers pay only a fraction of the cost of the product during the subscription term. When consumers are ready to upgrade, the old products are returned and enter Raylo’s circular process of refurbing and re-commerce for maximum lifespan and sustainability.

The risk platform leverages AI models and open banking data to reach more customers and has so far been successful in achieving market-leading credit approval rates for high-value consumer electronics orders, with average order values exceeding £1,000.

The startup has seen impressive growth over the past year. While many companies have been hit by economic turmoil, Raylo has actually been able to forge ahead, able to offer a valid solution to current times of difficulty. Its subscriber base is reported to have grown over 100% year on year, and, ​​the company expects growth to accelerate as persistently high UK inflation means consumers are increasingly demanding access to the products they need on a low monthly subscription. The company picked up €7.5 million last summer and this new debt facility marks a clear sign of confidence in its potential to scale. 

Milena Sheahan, Senior Director at NatWest: ”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 the 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”.

Alongside the team’s impressive growth, Raylo is standing out for its ability to make access to tech more sustainable, and its contribution to generating a circular economy for Europe. It’s, for this reason, the company has been awarded B-Corp status and it will now double down on its mission to accelerate the circular economy in consumer electronics and other categories of durable goods. 

Building on its commitment to driving adoption of the circular economy, products on subscription are returned to Raylo, refurbished and reused across multiple users over six or more years. Raylo’s circular model also eradicates e-waste – at the end of useful life products are sustainably recycled, rather than languishing in a landfill. Its been reported in the firm’s sustainability report that over 50% of emissions can be saved by extending the life of existing products and avoiding unnecessary overproduction of new products. 

This debt facility includes infrastructure to scale, with the intention to tap the securitisation markets in the future. The funds will be used to support growth, product expansion, and further sustainability objectives. 

Karl Gilbert, co-founder and CEO of Raylo: “We are thrilled to have the support of NatWest Bank and Quilam Capital as we continue to grow and innovate. This financing supports our strategy to further expand our platform and provide even more customers with affordable and sustainable access to the tech products they really want.”

Patricia Allen
Patricia Allen
is the Head of Content at EU-Startups. With a background in politics, Patricia has a real passion for how shared ideas across communities and cultures can bring new initiatives and innovations for the future. She spends her time bringing you the latest news and updates of startups across Europe, and curating our social media.

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