Consumer device leasing company Raylo has raised £10 million of debt to continue its growth.
This round of investment was financed by Avellinia Capital alongisde Clerville Investment Management.
It follows on from Raylo raising £2.9 million from Macquarie Group and Carphone Warehouse co-founder Guy Johnson at the end of last year.
Raylo launched alongside the iPhone 11 last year, with a business model that aimed to offer the device range SIM-free to reduce customer costs and reduce environmental impact through the circular economy.
It offers the devices on a 12 or 24-month contract with monthly payments. At the end of the subscription period, customers can either upgrade for free, keep their existing phone, or return it to Raylo, who then refurbishes the devices for recirculation.
Since launching with the iPhone 11, Raylo has expanded its device portfolio. As well as offering the new iPhone 12 and 12 Pro from £27.99 per month, it now also offers refurbished iPhone X, XR and XS Max models, as well as the Samsung Galaxy S20 5G and Note20 5G.
“We believe the days of one-trip ownership are coming to an end,” said Raylo CEO Karl Gilbert (pictured, left). “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.”
Raylo did not disclose precise customer numbers or growth figures to Mobile News, but said it was looking to double its subscriber base “within the coming months”.
When it launched last year, more than 10,000 people had signed up to its waiting list.
