UK’s revenue-based financing platform Bloom announced on Thursday that it has secured £300M in a round led by Credo Capital Partners, making the company the highest-funded revenue-based lending business in Europe.
As a part of the funding round, Christopher Dailey, Co-Managing Partner of Credo will join the board as part of this transaction and play an active role in helping Bloom grow.
The company will use the funds to cement its position in the European market.
Provides founder-friendly capital
Founded during the global pandemic in Luxembourg by James Hickson, Bloom provides founder-friendly capital to digital entrepreneurs. The company’s revolutionary pricing model ensures brands only pay for what they use.
“We are not another revenue-based lender. We estimate that e-commerce merchants have incurred £125-£200 million in excess fees based on the current pricing status quo. That’s money that could have been used for more stock, increased ad spend or customer incentives. We saw an opportunity to innovate rather than simply join the herd. So we did,” says Bloom CEO James Hickson.
He adds, “The Bloom product is based on a flexible pricing and deployment model that combines the best features of a revolving credit product, charging customers for only what they use with the predictability and transparency of cost that comes with fixed fee revenue-based lending.”
He continues, “Secondly, Bloom doesn’t put firms in boxes, it underwrites the business based on a holistic analysis of the value being created. The capital from Bloom is not designed for stock, marketing, or any other specific purpose as Bloom believes business owners who have growing companies should be free to use capital in the best way that suits them – No one knows their business better than the founders themselves.”
The company is on a mission to help digital brands unlock their potential with founder-friendly capital and tools that accelerate growth.
With its tools, Bloom helps brands understand how their business compares to benchmarks as well as their financial health with Bloom’s Open Banking analytics capabilities.
The team includes Werner Kruger, the former head of data science from Klarna. The board includes Michael Jackson, an early member of the leadership team at Skype and board member of Luminor Bank, and Christopher Dailey of Credo, also the former CEO of OakNorth and board member of DBT.
Investor
Credo Capital Partners bridges capital markets and fintech to build the financial ecosystems of tomorrow. Based in Stockholm and London, Credo is primarily focused on markets in Northern and Western Europe. A few months back, the VC invested in the Czech customer-centric product management platform, ProductBoard.
Demand for eCommerce lending has expanded in Europe. We wanted to make an investment in a platform that was moving the product forward and combined all of the great technology and analytics you expect with a really differentiated product and approach,” says Christopher Dailey, Credo Capital Partners.
