Raylo raises £10M for its sustainable smartphone model
- Raylo has completed a funding round for its new leasing model, which is set to radically reduce smartphone costs for consumers.
- The model is the first sustainable solution to our disposable phone culture, reducing CO2 emissions by 113kg per device and tripling a phone’s life span.
- It aims to boost social mobility by offering a more diverse range of consumers access to a quality smartphone.
Raylo, a fintech company offering a circular leasing model for smartphones, has raised up to £10M of debt to fuel its next phase of growth. The financing facility was led by Avellinia Capital, with participation from another specialist lender, Clerville Investment Management.
Founded in late 2018, Raylo is on a mission to reduce the waste baked into traditional tech consumption through a circular model whereby customers can lease new and refurbished devices for a lower monthly cost. When customers want to upgrade to a newer model, the old phone is returned to Raylo for refurbishment and reuse. Raylo’s Certified Refurbished offering is its fastest growing product category as consumers start to think more about their pockets and the planet.
Prices start from £14.99 per month for a Raylo Certified Refurbished iPhone XR, whilst the new iPhone 12 is available from £27.99 per month.
Karl Gilbert, Raylo’s CEO, said:
“We believe the days of one-trip ownership are coming to an end. Under Raylo’s circular model, devices will be used by a minimum of two people over a lifespan of six to seven years.
“This goes a long way towards reducing overproduction of devices and the estimated 45 million tonnes of annual e-waste caused by good quality tech going prematurely to landfill. ”
The model is underpinned by an innovative tech platform that leverages open banking data rather than relying on the credit bureaus. The traditional methods used by credit bureaus penalise individuals living in certain postcodes and those with limited credit history. Using open banking allows Raylo to make faster and more accurate assessments of an individual’s financial circumstances. In doing so, Raylo enables a wider range of individuals with diverse backgrounds access to quality smartphone technology.
Richard Fulton, CSO of Raylo, said:
‘‘We’re big believers in the power of good quality technology and the role it plays in social mobility. The Raylo model allows us to put great tech in more people’s hands.’’
The new funding will allow Raylo to continue its fast growth trajectory, with a view to doubling its subscriber base within the coming months.