Revenue-based business finance provider Bloom has secured £300 million in a funding round led by Credo Capital Partners and funds managed by Fortress Investment Group
Led by James Hickson, the ex-head of Morgan Stanley’s Fintech Enterprise and a former fintech investment advisor to Credo Capital Partners, Bloom specialises in providing capital to growth businesses that operate predominantly online.
Founded during the global pandemic in Luxembourg, 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.
“We are not another revenue-based lender," says Hickson. "We estimate that ecommerce 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.”