CapRelease Secures $36 Million (GBP 27 Million) to Revamp Working Capital for eCommerce Retailers
CapRelease, a pioneering logistics-embedded finance platform, has successfully completed a funding round of $36 million (GBP 27 million) through combined debt and equity to bolster its growth in the UK and to prepare for an international footprint.
This announcement follows the company’s impressive GBP 1.7 million pre-seed round earlier this year, marking one of the largest early-stage fundraises in the European Lend Tech sector in two years.
The funding round encompasses a senior debt facility of $33.3 million (GBP 25 million) provided by Partners for Growth (PFG), a globally recognized private credit firm, along with $2.7 million (GBP 2.0 million) in equity spearheaded by a global family office with established interests in fintech and leading UK neo banks.
A subsequent close of the equity round is scheduled for Q1 2026 to facilitate initial forays into the United States market.
The newly acquired capital will empower CapRelease to expand its presence throughout the UK, deepen integrations with logistics providers and retail technology platforms, and fortify its strategic position within the eCommerce value chain.
Additionally, the investment aims to enhance the company’s proprietary underwriting and risk frameworks, setting the stage for its anticipated U.S. expansion in 2026.
According to Mordor Intelligence, the UK eCommerce market is projected to reach approximately GBP 180 billion by 2025.
Nevertheless, numerous retailers remain hindered in their access to growth financing due to outdated credit assessments, protracted underwriting processes, and burdensome security requirements.
This restricted access to working capital inhibits the scaling and investment capabilities of eCommerce SMEs, which must respond to market demands with agility.
With eCommerce sales anticipated to grow at a CAGR of 22% between 2025 and 2030, CapRelease seeks to unlock this demand by correlating capital with validated operational performance, facilitating expedited access, lower default rates, and substantial growth without the necessity for personal guarantees or extensive collateral obligations.
Statements on the Funding Announcement:
“This funding round marks a transformative milestone for CapRelease, the logistics ecosystem, and the funding landscape for eCommerce retailers. By amalgamating multi-source AI/ML data intelligence with a cutting-edge infrastructure to manage risk, we are empowering retailers to secure capital with enhanced confidence and diminished friction,” remarked Jack Williams, Founder & CEO of CapRelease.
“Partnering with a specialized global credit firm like PFG is a substantial milestone for CapRelease. This collaboration grants us our inaugural senior institutional debt facility and the impetus to accelerate our growth, ultimately facilitating swifter, tailored capital access for SMEs to nurture their expansion,” stated David Nangle, Founder & CFO of CapRelease.
Richard Osborne, Investment Director at Partners for Growth, noted: “We are thrilled to collaborate with CapRelease during this crucial juncture. The collective expertise of the team in credit, logistics, and technology has cultivated a globally unique lending and distribution model with the potential to transform how eCommerce enterprises secure capital. We take pride in supporting their journey as they continue to scale.”
“We are eager to work with CapRelease as the company develops its platform further. CapRelease’s data-centric approach to evaluating merchant performance aligns seamlessly with PFG’s commitment to structured, risk-aware credit solutions,” added Armineh Baghoomian, Managing Director, Head of EMEA and Co-Head of Global Fintech at Partners for Growth.
This investment epitomizes PFG’s strategy of backing high-growth enterprises with structured credit that harmonizes downside protection with scalability, a practice established over two decades supporting more than 250 companies across fifteen countries.
Revolutionizing Working Capital for eCommerce
CapRelease extends funding to ambitious retail enterprises across diverse sectors, including burgeoning fashion brands and rapidly expanding wellness labels.
The platform harnesses real-time data from logistics partners, sales performance metrics, payment systems, and consumer behavior to provide working capital that accurately reflects a merchant’s genuine trading momentum.
With insights into customer trends, product velocity, and inventory turnover, retailers can access rapid, flexible, and non-dilutive financing, leveraging CapRelease’s proprietary AI and ML underwriting algorithms, which assess risk using myriad data points inaccessible to traditional lenders.
CapRelease offers an innovative amalgamation of inventory and revenue-based financing solutions for eCommerce merchants, buoyed by extensive data integrations across merchant operations, logistics partners, and payment systems. The platform facilitates:
- Unique market access via a logistics partnership network
- Real-time AI/ML data-driven risk assessment
- Expedited credit decisions and capital deployment
- Robust collateral safeguards without requiring personal guarantees from founders
The platform boasts an embedded presence throughout the eCommerce value chain, synergizing closely with third-party logistics (3PL) providers and retail facilitation platforms to deliver capital precisely when merchants need it.
Deployment and Growth Strategy
The fresh infusion of capital will underpin CapRelease’s strategic growth initiatives, which include:
- Expanding operations throughout the UK and planning for international outreach
- Facilitating thousands of working capital advances for eCommerce merchants
- Enhancing strategic partnerships within the logistics and retail sectors
- Ongoing advancements in proprietary risk assessment models and underwriting frameworks
- Expanding into the U.S. market in 2026
Source link: Financialit.net.
