Dynamic financing platform for early-stage companies Debite has set its foot in the U.K. with a £2.5 million pre-seed round of funding. The investment is a mixture of equity and debt financing which came from both VCs and angel investors from the fintech world. The round was backed by PlatformXit, the co-founder of e-wallet firm Papara, and QNBEYOND Ventures, the VC arm of QNB Group. The investment will drive the platform’s future funding options later this year.
Founded by Tayga Baltacıoğlu, Andres Korin, Engin Attar, the London-headquartered fintech company aims to bring the flexibility of the buy now, pay later (BNPL) model to business financing. With an initial focus on the U.K, it has launched two products - hassle-free loans and a business credit card.
The platform plans to tap early-stage businesses that need more capital than traditional banks can provide and less capital than is being offered by the bigger VC companies. The company will offer business loans of between £5,000 to £50,000, with interest rates starting at 1.40% per month.
According to the company, the Boosted Debite Card will offer credit limits that are typically 20 times higher than traditional lenders and at 0% interest if paid within 30 days.
Debite CEO Tayga Baltacıoğlu, said “We are beyond excited to be making our vision a reality with the launch of Debite. So many early-stage companies start out with amazing ambitions and the potential to do incredible things, but issues with managing the heavy burden of operational costs, and a lack of attractive funding options from traditional lenders to help smooth cashflow, means that growth is often stifled. We know this market is ripe for innovation and we have huge growth plans to meet this challenge.”
The firm said over 100 companies have already registered on its pre-launch waiting list requesting access to over £1 million in potential credit.