Raylo, a London-based subscription payment platform for electronics, has secured a £110M debt financing facility from NatWest bank and Quilam Capital.
In July, the ‘Netflix of electronics’ raised £6.5 million from Wayra UK and other existing investors.
So far, the UK-based company has raised over £150M from existing investors, including Octopus Ventures, Macquarie Bank, and Telefónica. Raylo will use the proceeds to fund its growth and product expansion.
Further, the company plans to grow its direct-to-consumer channel and checkout integration for merchants — Raylo Pay, where the pipeline of retailers has grown 10x in the last six months to a £3B p.a. opportunity.
“We are thrilled to have the support of NatWest Bank and Quilam Capital as we continue to grow and innovate,” said Karl Gilbert, co-founder, and CEO of Raylo. “This financing supports our strategy to expand our platform and provide even more customers with affordable and sustainable access to the tech products they want.”
Besides funding, Raylo has become a BCORP company as its circular model reduces emissions by over 50%. To accelerate the circular economy, products on subscription are returned to Raylo, refurbished, and reused across multiple users over six or more years.
Raylo claims to eradicate e-waste – at the end of useful life, products are sustainably recycled rather than languishing in a landfill.
Circularity and reuse
Founded by Karl Gilbert, Richard Fulton, and Jinden Badesha in 2018, Raylo enables consumers access to the latest tech products via a monthly subscription that’s both more economical and sustainable.
Raylo says it has achieved market-leading credit approval rates for high-value consumer electronics orders, with average order values exceeding £1,000.
“Raylo is solving a real problem for consumers, who are increasingly looking for more affordable and sustainable ways to access the latest technology,” said Richard Fulton, co-founder, and CSO at Raylo. “We are confident that Raylo’s innovative approach and use of technology will continue to drive strong growth and success in the future.”
The UK company has witnessed a 100% growth year on year. It expects growth to accelerate as the demand for accessing the products at low monthly subscriptions is increasing amid high inflation.
“We are delighted to have supported Raylo’s future growth 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,” said Milena Sheahan, Senior Director at NatWest. “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.”