A Spanish FinTech has partnered with WorldFirst to give eCommerce companies in the UK potential access to £3 million in growth funding.
WorldFirst says companies generating substantial revenue can be pre-approved for the working capital, which helps with the cash flow problem prevalent in many eCommerce companies selling via marketplaces, in seconds.
The partnership with RITMO, headquartered in Madrid, has been secured following the Spanish firm’s new $200m debt funding round and will make £100m available to businesses in Europe and the UK.
“There is a $1.7 trillion financing gap which is adversely affecting eCommerce businesses,” CEO Raimundo Burguera, who co-founded RITMO with Iñaki Mediavilla, Iván Peña and Prageet Sharma in 2021, told BusinessCloud.
“Our mission is to plug this gap but offering these eCommerce companies access to growth capital. There is clear market demand for this, which is why RITMO has scaled so rapidly in under 12 months of operating.
“The funding will be used to support RITMO’s rapid growth, ensuring capital is available to fuel the funding of over 2,000 eCommerce clients over the next 18 months in key European and LATAM countries.
“Importantly, our recently announced partnership with WorldFirst means high-growth eCommerce businesses in the UK can access growth capital of up to £3m. We are addressing a global challenge, which is why our focus is establishing a presence around the world, including the UK.”
RITMO is a FinTech platform that provides working capital financing and an automated Buy Now, Pay Later payment system for eCommerce businesses to overcome supply chain challenges, ensuring they can better manage cash flow and scale faster.
In the past seven months, RITMO has achieved a 12x growth rate with more than 600 loans made in five countries across two continents.
As part of its growth and international expansion strategy, RITMO has secured agreements with major players in the payments and eCommerce sector, with access to more than 150,000 merchants.
Its new funding round was led by i80 Group and Avellinia Capital, making it one of the largest of any eCommerce finance business in Europe and Latin America.
Asher Hochberg, MD of i80 Group, said: “With the proliferation of the eCommerce marketplace ecosystem in the last few years, we are excited to partner with RITMO on their mission to provide an innovative credit financing solution to eCommerce entrepreneurs opting for non-dilutive growth capital instead of selling their business.”