Madrid’s Ritmo has closed a seed round at €13.8 million. The startup offers up to €3 million in non-dilutive growth capital to digital businesses in less than 24 hours. The funding is expected to fuel international growth in new European and LATAM markets.
Founded in late 2020, Ritmo is aiming to be at the heart of the growth of digital-only businesses. The company currently offers support to e-commerce, D2C, and marketplace entrepreneurs, with apps and games makers, SaaS platforms, and subscription model-based businesses on the horizon.
By offering recurring revenue-based financing, Ritmo is providing these retailers with access to growth capital that is calculated based on sales numbers. The financing is then repaid through a percentage of monthly sales. Realising that some months are better than others, should a seller’s sales take a dive, Ritmo will extend the repayment period.
Further championing upstarts, Ritmo provides an AI-powered analytics tool that helps entrepreneurs make more informed decisions about their business via a series of APIs. Another way of looking at it is ensuring that Ritmo recoups their money.
Back in April of this year, Ritmo announced a €3 million seed round from investors FinRebel, JME Ventures, Inveready, and Sabadell Venture Capital. The €10.8 million is an extension round, with the firm listing Bynd Venture Capital and Wayra, and “a few” international investors also participating.
“This new investment will help us accelerate our growth rate (currently 2x month-on-month) internationally with our objective of democratizing access to capital. The confidence shown by our investors in the project and in our future plans is a vital step towards achieving this objective,” commented co-founder and co-CEO Raimundo Burguera.