Debite, a London-based financing platform for early-stage startups, has launched in the UK with a £2.5m pre-seed round of funding.
The fintech company said it’s bringing the flexibility of the buy now, pay later model to business financing. It has initially launched in the UK with two products: easy-access loans and a business credit card.
Debite is targeting early-stage businesses that need capital to help with operational costs, such as software subscriptions and business inventory.
It’s looking to serve businesses that need more cash than traditional banks can provide, but don’t require the larger volumes of capital usually associated with VC-based funding.
It will offer business loans of between £5,000 to £50,000, with interest rates starting at 1.40% per month. Meanwhile, the “Boosted Debite Card” will offer credit limits that are “typically 20 times higher than traditional lenders” and at 0% interest if paid within 30 days.
Both financial products are offered via an application process on Debite’s platform.
According to Debite, “over 100” companies have registered on its pre-launch waiting list requesting access to over £1m in potential credit.
Debite’s £2.5m pre-seed is a mixture of equity and debt financing that came from both VCs and angel investors from the fintech world.
Among its backers are PlatformXit, the co-founder of e-wallet firm Papara, and QNBEYOND Ventures, the VC arm of QNB Group.
Debite said it will explore future funding options later this year and plans to hire 20 additional staff.
Debite was founded by three entrepreneurs with previous experience at JP Morgan, Bain & Company and Cleanzy.
“So many early-stage companies start out with amazing ambitions and the potential to do incredible things, but issues with managing the heavy burden of operational costs, and a lack of attractive funding options from traditional lenders to help smooth cashflow, means that growth is often stifled,” said Tayga Baltacıoğlu, CEO and co-founder of Debite.
“We know this market is ripe for innovation and we have huge growth plans to meet this challenge.”
Baltacıoğlu founded Debite alongside CFO Andres Korin, who previously spent 12 years at JP Morgan, and head of product and growth Engin Attar, who previously worked as a management consultant at Bain & Company.