Circular economy fintech Raylo has agreed a new £110m debt financing facility from NatWest and Quilam Capital.
Raylo, which currently provides consumers with access to high value tech products on affordable monthly subscriptions, plans to grow both its direct to consumer channel and its checkout integration for merchants, Raylo Pay.
"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.” says Milena Sheahan, senior sirector at NatWest. “Raylo are a progressive, forward thinking business, with a solid platform to positively influence consumer behaviour and attitude towards use of technology in the future."
The company uses an AI scoring tool and open banking data to rate customer approvals for high-value consumer electronics, with average order values exceeding £1,000. For the circular economy element, products on subscription are returned to Raylo, refurbished and reused across multiple users over six or more years.
The firm says its subscriber base has grown over 100% year on year, and the company expects growth to accelerate as persistently high UK inflation fuels demand.
Raylo has raised over £150m to date, including existing equity investors: Octopus Ventures, Macquarie Bank and Telefónica. This latest debt financing includes new Raylo infrastructure that is built for scale, with the intention to tap the securitisation markets in the future.