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Raylo has raised GBP £30 million in new funding and signed a partnership with LG as it expands its electronics subscription business in the UK and prepares to enter the US market.
The London-based company said the deal with LG covers TV and audio products for UK customers. Raylo also works with Dyson, PlayStation and Apple, according to the company.
LG Partnership
Under the partnership, Raylo will offer subscriptions for LG TVs and audio devices. The offer includes options billed monthly, yearly, or on a rolling basis.
Customers can take out subscriptions through the LG website, Raylo.com, or the Raylo App. Raylo said the subscription offer includes the option to upgrade when new technology becomes available.
Raylo said it provides subscription infrastructure for electronics brands. It said its platform covers credit underwriting, financing and device lifecycle management. Raylo described the underwriting as AI-based.
Karl Gilbert, CEO and Co-Founder of Raylo, said the shift in retail models is widening beyond smartphones and laptops.
"Electronics brands are increasingly moving beyond one-time sales and toward subscription-first models," said Karl Gilbert, CEO and Co-Founder, Raylo. "Our partnership with LG marks a key step in that transition, delivering clear value for both electronics brands and customers whilst expanding our category offering with a true global leader. It's been great working with the LG team to bring this to market, and we're excited about scaling the partnership together."
Christina Sangmi Lee, Head of LG.com, said LG sees demand for alternatives to traditional purchases.
"We know people want greater choice in how they enjoy the latest technology. By partnering with Raylo, we're able to offer a subscription experience that meets the expectations of today's customers. We're excited to bring LG Flex to market, offering more flexible and affordable access to LG's latest tech," said Lee, Head of LG.com, LG.
Funding Mix
The GBP £30 million funding package combines GBP £10 million in equity and GBP £20 million in debt. Raylo said Citibank led the equity portion and NatWest provided the debt.
The company said a US bank has joined its shareholder base. It did not name the bank.
Raylo said it has secured more than GBP £180 million in total funding to date. Backers include Macquarie and Channel 4 Ventures, alongside Citi and NatWest.
Raylo said the new capital will go toward UK growth and an international push. The company said it plans a US launch in the second half of 2026.
Gilbert linked the fundraise to confidence from both brand partners and financial backers.
"As we prepare for global expansion, this momentum reflects strong confidence from leading brands and investors in our ability to scale Raylo's subscription model across categories and markets," said Gilbert.
Retail Shift
Electronics subscriptions and other forms of device-as-a-service have expanded across consumer technology in recent years. Companies have used them to smooth demand, keep customers within an upgrade cycle and manage returns and refurbishments.
Raylo positions its model around what it calls circular device usage. The company said it manages a device lifecycle from onboarding and credit checks through to returns and onward allocation.
The move into larger home electronics, such as TVs, adds a category that typically carries higher upfront costs and longer replacement cycles than smartphones. Raylo said the LG deal offers "lower monthly prices" compared with outright purchase, as well as the ability to change devices over time.
For LG, the partnership adds a subscription route for products sold through LG.com. It also creates a direct relationship with customers who might otherwise buy TVs through retailers or buy-now-pay-later providers.
Raylo said it enables brands to launch and scale subscriptions on its infrastructure. It said this includes financing structures alongside risk and lifecycle operations.
The company said it will continue to expand across device categories and markets as it builds out the model with existing and new brand partners.