Consumer Tech Rental Service Secures £30 Million Funding
Introduction to Raylo
A consumer tech rental service that has partnered with major brands such as Apple, Dyson, and Sony’s PlayStation has received a significant investment. The company, founded in 2018, has announced that it has secured £30 million in new funding and formed an alliance with LG, the Korean electronics giant.
Funding and Valuation
The funding round, which values the company at £150 million on a post-money basis, includes a £10 million equity investment from Citibank, making the American financial services giant a shareholder in the company. Additionally, Raylo has secured £20 million in debt funding from NatWest Group, the main lender. This brings the total amount of debt and equity funding raised by the company to more than £180 million.
Partnership with LG
The new partnership with LG will provide UK customers with access to premium TV and audio products, underlining the company’s belief that both consumers and multinational technology brands are moving towards subscription-based models. This partnership represents an important step in the transition towards subscription models, providing clear value for both electronics brands and customers.
Market Trends and Expansion
According to Karl Gilbert, co-founder and CEO of the company, electronics brands are increasingly moving beyond one-time sales and towards subscription models. The partnership with LG expands the company’s category offering with a true global leader, reflecting the strong confidence of leading brands and investors in the company’s ability to scale its subscription model across categories and markets. The funding is expected to help the company prepare for its US launch in the second half of the year.
Funding Partners
The company’s other funding partners include Macquarie and Channel 4 Ventures, which has completed a number of media-for-equity deals. The investment from these partners demonstrates the confidence in the company’s business model and its potential for growth and expansion.
