Electronics subscription platform Raylo has raised £5.2m ahead of an upcoming crowdfunding campaign on Crowdcube.
London-based Raylo is aiming to combat consumer e-waste with a subscription model that recycles electronics.
Aside from its subscription product, Raylo offers its own custom leasing payment software that can be used by third-party businesses. The company says it uses an AI risk model to decide whether or not to accept purchasers.
Karl Gilbert, CEO and co-founder of Raylo, said: “With the support of Macquarie and Channel 4 Ventures, we’ve raised an additional £5m, totalling £21m in funding.”
So far it has amassed 80,000 subscriptions, producing £22m in annualised recurring revenue, the company said.
Hannah Redgewell, investment principal, Channel 4 Ventures said: “Our investment will enable Raylo to build awareness of its proposition throughout the UK and help it on its journey in becoming a household name.”
The startup at the start of the year agreed to a £110m debt financing facility from Natwest and Quilam Capital. It also raised £6.5m last July in a round led by Wayra UK.
Raylo’s latest round was led by Macquarie and Channel 4 Ventures. As part of the deal, the firm will receive advertising airtime.
Investments made by Channel 4 Ventures’ include What3words, Crowdcube, Pinterest and car-selling marketplace Carwow.