The startup, which was co-founded by former Uber Eats executive Jakub Pietraszek, provides ecommerce firms with funding to finance growth through digital ads on Facebook and Google, marketing campaigns and inventory spend.
The Series A funding round, led by Polish fintech investor DialCom24, comes just four months after the company announced its launch and initial seed round in January.
Booste said it will use the cash injection to fund expansion to the UK, as well as Ireland and the Netherlands.
A spokesperson said the company had chosen the UK due to the strength and size of its ecommerce market.
“At the same time, while UK businesses are generally already familiar with the revenue-based finance, the market is far from being oversaturated. There is a gap particularly with regard to the financing needs of small and medium e-commerce businesses, which Booste is well positioned to address,” they added.
The company is one of a growing number of fintechs offering revenue-based financing (RBF) — a financial tool that has risen rapidly in popularity thanks in part to the pandemic.
Instead of a traditional bank loan, which requires credit checks and guarantees, or venture capital that leads to equity loss, RBF allows businesses to access funding quickly and pay it back depending on their revenue income.
A report by Allied Market Research estimated that the RBF market will grow from $901.4m in 2019 to $42.3bn by 2027.
Booste charges a flat fee and can provide funding within two days. It is available to businesses that have been operating for at least six months and that sell through integrated platforms such as Shopify.
“The past year has seen a surge in e-commerce businesses launching with more people shopping online than ever before. But this means the competition is much harder too,” said co-founder and chief executive Jakub Pietraszek.
“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.”