Raylo raises GBP 110 mln

As it currently offers consumers access to high value tech products on affordable monthly subscriptions, Raylo is looking to grow both its direct-to-consumer channel and its checkout integration for merchants – Raylo Pay – as the pipeline of retailers has seen a tenfold increase in the last 6 months to a GBP 3 billion per annum opportunity, as per announcement information.

Raylo product offering and how the funding falls into place

Its risk platform, which leverages AI models and Open Banking data to reach more customers than traditional payments played an important role in attracting this investment, as it has achieved credit approval rates for high-value consumer electronics orders, with the average order values being over GBP 1,000. Furthermore, the company expects growth in its subscriber base to accelerate, as the persistently high UK inflation means that consumers have an increasing demand to access the products they need on a low monthly subscription.

NatWest officials advised that they are looking forward to supporting Raylo’s growth ambitions for the future with this financing facility, stating that the business’ commitment towards changing the way consumer electronics are sold is also aligned with NatWest’s ESG objectives and ‘passion for innovation and disruptive technologies’.

The financing is set to support the company’s strategy to further expand their platform and provide to an increased number of customers affordable and sustainable access to the tech products they want. Company officials stated that Raylo is looking to solve a real problem for consumers, and they believe that its approach and use of technology will help drive growth and success in the future. 

As detailed in the announcement, Raylo has raised more than GBP 150 million to date, including equity investors of the likes of Octopus Ventures, Macquarie Bank and Telefónica. The latest debt financing includes new infrastructure for the company that is built for scale, with the intention to tap the securitisation markets in the time to come.

Furthermore, Raylo is also making public its BCORP status, strengthening its mission to accelerate the circular economy in consumer electronics and other durable goods categories. Building on its commitment to drive adoption of the circular economy, products on subscription are returned to Raylo to be refurbished and reused across multiple users over a period of six years or more. Additionally, the company’s circular model helps eradicate e-waste, with the useful products that are at the end of life being sustainably recycled. As detailed in the announcement, the company’s sustainability report highlights that more than 50% of emissions could be saved by extending the life of existing products and avoiding unnecessary overproduction of new ones.

Raylo’s business and technology aims to deliver advantages for both consumers and merchants, with the company looking forward towards its growth and product expansion strategy, which is set to include new retail categories.