A FinTech offering revenue-based financing to eCommerce companies has raised €12 million in Series A funding to expand its model across Europe including in the UK, Ireland and Netherlands.
The news comes just four months after Booste announced its launch and the initial seed round.
Booste provides flexible financing to companies, with a particular focus on eCommerce businesses.
Instead of a traditional bank loan which requires credit checks and personal guarantees or venture capital which leads to equity loss, RBF allows businesses to access funding as and when required and to pay it back depending on their revenue income.
Booste provides eCommerce businesses with access to funds to finance digital ads such as Facebook or Google ads, marketing campaigns and inventory spent. It takes three minutes to apply and clients receive a personalised offer within 24 hours.
Potential customers need a minimum of six months of operating history and to sell through one of the integrated platforms like Shopify, WooCommerce, and PrestaShop.
Booste connects to these platforms and accesses the read-only numerical data to generate an offer. Once an application has been approved, the capital is then available within one day, and clients can begin to spend the funds using a virtual card, or upload invoices to be paid by Booste.
Booste charges a flat fee of 6% for financing for marketing activities or 9% for inventory spent.
Customers decide how and when they pay back the funds borrowed, such as weekly, biweekly or monthly. This allows them to focus budgets on other growth areas.
“The past year has seen a surge in eCommerce businesses launching with more people shopping online than ever before,” said CEO and co-founder Jakub Pietraszek.
“But this means the competition is much harder too. Booste allows e-commerce business owners to cut through the noise by offering funds they can access and use to grow on their own terms. We’re excited to expand Booste to more businesses across Europe thanks to this funding.”