Raylo raises €34.5 million and adds LG as subscription partner
Raylo, a London-based company that provides subscription infrastructure for major electronics brands, has raised €34.5 million (£30 million) and announced a new partnership with LG. The funding will be used to expand into additional device categories, deepen growth in the UK, and support a planned US launch in the second half of 2026.
The financing package includes €11.5 million (£10 million) in equity led by Citibank, alongside €23 million (£20 million) in debt from existing investor NatWest. The company said the combination of equity and debt strengthens its ability to finance device subscriptions at scale while continuing to invest in its platform.
LG subscription offering targets TVs and audio in the UK
Under the new partnership, UK customers will be able to access LG TV and audio products through a subscription model, which the companies say is designed to lower upfront costs and provide flexibility to upgrade as new products are released.
Karl Gilbert, CEO and co-founder of Raylo, said electronics brands are increasingly shifting away from one-time sales toward recurring access models. “Electronics brands are increasingly moving beyond one-time sales and toward subscription-first models,” he said, describing the LG deal as a step toward expanding Raylo’s category coverage with a global manufacturer.
Christina Sangmi Lee, Head of LG.com, said the partnership reflects changing customer expectations around how consumers pay for and upgrade technology. She added that the companies are bringing “LG Flex” to market to offer more flexible and affordable access to the latest devices.
Why investors are backing device subscriptions and the circular economy
The raise arrives as subscription-based access models—often tied to the circular economy and device reuse—continue to attract investment across Europe, though deal flow has been uneven. The broader trend is driven by a mix of consumer demand for lower monthly payments, manufacturers’ interest in recurring revenue, and sustainability pressures to extend device lifecycles.
Recent European rounds in adjacent subscription infrastructure and asset-backed subscription models include Warsaw-based Juo, which raised €4 million in seed funding to help businesses launch and manage physical-product subscriptions. In the UK, GIN e-bikes raised £215,000 in debt financing to expand its subscription fleet in London, highlighting a smaller, asset-backed approach focused on mobility.
Subscription economics are also spreading beyond consumer electronics. Lisbon-based Bling Energy raised €15 million to scale a solar-as-a-service model, illustrating how recurring revenue structures are being applied to energy and home infrastructure as well.
Against that backdrop, Raylo sits at the larger end of recent European financings in the subscription and circular access space—particularly for platforms built to serve established brands rather than single-product subscription operators.
Inside Raylo: credit, lifecycle orchestration, and financing
Founded in 2019, Raylo positions itself as an end-to-end subscription platform for electronics brands, combining risk technology with operational tooling to manage devices over their full lifecycle. The company says its platform spans credit and fraud risk technology, lifecycle orchestration, and a financing engine designed to support large-scale device access programs.
The company frames its model as enabling brands to move from “single-use” sales to circular, recurring relationships that can be both profitable and more customer-centric. In practice, that typically means handling subscription billing and underwriting, managing returns and upgrades, and coordinating refurbishment or redeployment of devices where applicable.
Brand roster includes Apple, PlayStation, and Dyson
Raylo says it works with leading electronics brands, including Apple, PlayStation, Dyson, and now LG. The company has raised more than €207 million (£180 million) in total funding to date, with backing that includes Macquarie, Channel 4 Ventures, Citi, and NatWest.
Prior financing includes a €7.5 million round in 2022 and a €124 million debt facility in 2023, which the company used to scale its subscription offering and expand partnerships with large consumer electronics brands.
What the new capital will fund next
With the latest €34.5 million injection, Raylo plans to accelerate expansion across device categories and international markets. The company said the funding will support continued growth in the UK while preparing operations for a US launch in H2 2026.
For the broader market, the deal underscores a key shift: subscription models are no longer limited to niche startups testing consumer appetite for rentals. Increasingly, they are becoming an infrastructure layer that helps major manufacturers and retailers offer recurring access to high-ticket electronics—an approach that could reshape how consumers adopt, upgrade, and pay for technology over time.
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