British Raylo expands debt facility to €145 million

Sustainable technology through circular economy

Raylo’s subscription model allows customers to lease devices such as smartphones, laptops, and tablets, which are then refurbished and reused multiple times over a span of six or more years. Once these devices reach the end of their usable life, Raylo ensures they are responsibly recycled, reducing the e-waste that typically ends up in landfills. This innovative approach supports a circular economy, aligning with growing consumer demand for more sustainable products.

The company’s focus on sustainability has been validated by S&P Global, which has assessed Raylo’s financing as green, the first of its kind for a fintech company. This certification, based on Raylo’s alignment with the ICMA Green Bond Principles and the LMA Green Loan Principles, has allowed Raylo to reduce the interest rate on its debt facility.

Facility expansion to fuel rapid growth

Raylo’s expanded € 145 million facility will support the company’s continued growth and allow it to broaden its range of electronic devices, providing even more affordable technology options for consumers. Over the past three years, Raylo has experienced a 40-fold growth, now serving over 100,000 customers. The lower interest rate, achieved due to the green certification, will also enable Raylo to pass on savings to its customers, further boosting accessibility.

CEO Karl Gilbert expressed enthusiasm about the company’s trajectory, stating, “We’re excited to expand our relationship with NatWest and to be recognised for our commitment to sustainability. The S&P green financing validates our circular business model and allows us to offer even more affordable prices to our customers."

Crowdfunding and new products

Last year Raylo launched a crowdfunding campaign through Crowdcube. Iinviting supporters to invest in the company's mission of making technology more sustainable and accessible. The company raised over € 1.4 million from 325 different investors. Also in 2023, Raylo secured a € 5.8 million investment round led by Australian Macquarie Group, that has also an investment in Irish recycler Alchemy, and Channel 4 Ventures. These funds helped company’s growth, with last reported annual recurring revenue of € 25.6 million and an Ebitda of around € 3.55 million helped by a 92% customer retention rate.