Offering cash-strapped startups an alternative to venture capital, venture debt, or bank loans, Revenue-Based Financing Startups Are Gaining Ground. While the Berlin-based fintech re:cap raised $111.5 million in a seed funding round last year and Capchase raised $80 million in March, based in Madrid RHYTHM is adding brilliance to the breed.
after breeding 13.8 million euros of financing in a seed round in July of last year, RITMO is back with a vengeance. The fintech has now closed a $200 million debt financing round led by i80 group Y Avellinia Capital. According to the company, it is one of the largest funding rounds of any e-commerce financing business in Europe and Latin America. This brings the platform’s total funding raised to $225 million in debt and equity financing in its first year of operations.
The financing will be used to support the company’s rapid growth, ensuring that capital is available to drive financing for more than 2,000 e-commerce clients over the next 18 months in key countries in Europe and Latin America. It will also drive RITMO’s global expansion strategy and its launch plans in new markets through agreements with key players in the payment and e-commerce sectors.
Founded in 2021 by Raymond Burguera, Inaki Mediavilla, Ivan Pena Y Prageet Sharmafintech platform provides working capital financing and an automated Buy Now Pay Later (BNPL) payment system for e-commerce businesses to overcome supply chain challenges, ensuring they can better manage cash flow and scale faster.
Through this range of products, its technology is integrated into the daily operations of its clients, offering financing for growth and allowing merchants to extend payment terms with suppliers.
The Spanish startup has closed agreements with the main players in the payment and electronic commerce sector, with access to more than 150,000 merchants. In March 2022, it partnered with global fintech and international payment services provider, WorldFirst, to launch a £100m growth package for fast-growing e-commerce businesses in the UK and Europe.
Raimundo Burguera, CEO and co-founder of RITMO, said: “In less than a year of operations, RITMO has closed one of the largest financing rounds of any e-commerce financing company in continental Europe and LATAM, backed by the renowned i80 Group. . and Avellinia Capital. With this new funding, we aim to help thousands of eCommerce entrepreneurs quickly scale and overcome today’s supply chain challenges by giving them the capital and tools to effectively manage their cash flow cycles.”
Asher Höchberg, managing director of i80 Group, added: “There has been a proliferation of the e-commerce market ecosystem in recent years. RITMO is on a mission to provide an innovative credit financing solution to e-commerce entrepreneurs who choose non-dilutive growth capital rather than sell their business.”
Christoph Pfundsteinco-founder of Avellinia Capital, concluded: “We are delighted to provide a flexible, multi-jurisdictional, multi-currency financing facility to RITMO to support its further growth.”
As a reminder of the ongoing RBF race, our ongoing tabulations:
|Name||Location||response time||income range||previous requirements|
|Carmen||France||< 48 hours||40% annual interest rate||–|
|White||London / Berlin||< 24 hours||100% annual interest rate||ARR of £100,000|
|resume||Sedan||< 48 hours||50% ARR|
|Rhythm||Madrid||< 24 hours||up to 3 million euros|
|Require||amsterdam||< 24 hours||unspecified cap||MRR of €20,000|
|Vice versa||Milan||< 72 hours||€10,000 – €1 million|
|Flying||Dublin||< 24 hours||$10,000 – $20 million||MRR of $20,000|
|Silver||Paris||< 24 hours||€10,000 – €10 million||€10,000 MRR|
|ark capital||Stockholm||< 336 hours||€1 million – €10 million||variable|