This is a with-trend financing because banks are leaning into subscription economics in hardware, where recurring revenue and tighter asset control can de-risk consumer electronics financing.
UK-based Raylo has closed a EUR 34.5 million (£30 million) growth funding round, combining £10 million in equity and £20 million in debt. The equity tranche was led by Citibank, which is joining Raylo’s cap table, while NatWest provided the debt financing and remains an existing backer. The company said proceeds will support expansion across device categories and a planned US launch in H2 2026.
Raylo positions itself as subscription infrastructure for electronics brands. Its platform spans AI-based credit underwriting, financing and device lifecycle management, enabling manufacturers to offer subscriptions and manage assets across the full lifecycle rather than relying solely on one-off retail sales. In practice, that means lower upfront costs for consumers, recurring revenue for brands and a clearer pathway to recover, refurbish and redeploy devices.
The timing of the raise is closely tied to commercial momentum with brand partners. Alongside existing collaborations with Apple, PlayStation and Dyson, Raylo has announced a new partnership with LG covering TV and audio subscriptions. That expansion beyond the traditional subscription-heavy categories of smartphones and laptops is the point: the model is increasingly being applied to a wider set of higher-ticket consumer electronics where financing, returns and resale value matter.
For lenders, this structure is more investable than generic consumer credit when it is executed well. Subscription plans can be underwritten with richer data, and the underlying device remains a managed asset with defined recovery and remarketing pathways. That helps explain the blend of equity plus debt in the round, and why a bank-led equity investor is joining specifically to back international expansion.
Raylo has now secured more than £180 million in total funding to date, reflecting a funding history that includes a €7.5 million raise in 2022 and a previously reported €124 million financing. CEO Karl Gilbert said the latest fundraise reflects confidence from leading brands and investors in Raylo’s ability to scale.
Execution risk remains typical for this model: expanding into new categories raises operational complexity, from logistics and returns to refurbishment capacity and residual value management. A US launch also adds regulatory, underwriting and partnership hurdles, especially if Raylo needs to replicate UK performance with different credit dynamics and consumer behaviour. Still, the combination of brand partnerships and bank-backed capital suggests Raylo is positioning itself as the infrastructure layer for “tech-as-a-service” as electronics manufacturers push subscriptions deeper into mainstream retail.