Raylo Raises £30m to Power Electronics Subscriptions and Ink LG Partnership

Raylo, the London-based subscription infrastructure platform for electronics brands, has announced a £30m fundraise comprising £10m in equity led by Citibank and £20m in debt from existing backer NatWest. The deal, which brings Raylo's total funding to more than £180m and values the company at £150m post-money, arrives alongside a headline commercial win: a new subscription partnership with LG that lets UK consumers access premium TVs, soundbars and monitors via Raylo's platform from as little as £15 per month, with no upfront cost. The company has previously built similar arrangements with Apple, Dyson and PlayStation.

Consumer electronics brands face a structural challenge: high upfront device costs suppress demand, compress margins on one-time sales and leave brands without an ongoing customer relationship. Device-as-a-service models address each of these pain points — recurring revenue replaces lumpy hardware sales, subscription data deepens loyalty, and end-of-life device handling enables refurbishment cycles. The challenge for brands has been building the underlying infrastructure: credit underwriting, financing, and lifecycle management at scale.

Raylo provides exactly that operating stack. Its end-to-end platform spans AI-powered credit and fraud risk assessment, financing engine management, and device lifecycle orchestration, enabling brands to launch and scale their own subscription offerings on proprietary infrastructure without building these capabilities in-house. The LG partnership — launching as LG Flex — allows customers to subscribe directly via LG.com or Raylo.com, choosing monthly, annual or rolling terms, with the option to upgrade as new technology comes to market.

The addition of Citibank as an equity investor is significant, marking the entry of a major US financial institution onto the cap table ahead of a planned American launch in the second half of 2026. That geographic expansion will extend Raylo's model into a market where device-as-a-service remains underpenetrated relative to the UK. The NatWest debt facility deepens an existing relationship and is structured to support growing device portfolio financing as Raylo adds more brand partners and categories.

The broader shift toward subscription-first electronics models is well underway across Europe, with brands increasingly moving from one-off sales to circular, profitable and customer-centric models. Raylo's ability to sign Citibank as an equity partner and LG as a commercial partner in the same announcement suggests investors and brands alike see the company as the emerging infrastructure layer for that transition.

Sources

• Soapbox VC – Raylo announces £30m in funding alongside new partnership with LG
• Business Cloud – Raylo agrees LG deal and raises £30m to expand globally
• IT Brief UK – Raylo raises £30m and seals LG UK subscription deal
• LG UK Press – LG partners with Raylo to offer LG Flex subscription model