Revenue-based financing startup Bloom collects over $377M in Series A

Luxembourg-based Bloom has raised Europe’s largest Series A this year with a £300 million (about $377.1 million) investment.

The startup specializes in providing ecommerce companies with revenue-based financing—lending more than £9.7 billion to date. The round, led by Credo Capital and Fortress Investment Group, brings Bloom’s total funding above £900 million.

VC deal activity is expected to take a hit this year amid rising inflation, public market volatility and geopolitical tensions. As cash-hungry startups face the prospect of harsher fundraising conditions, and even down rounds, revenue-based financing could become more popular.

Revenue-based financing is a form of loan that doesn’t require any equity from the startup. Repayments are directly linked to performance: If a startup’s expected revenue falls short of expectations, then repayments decrease. Similarly, if revenue is higher than predicted, the financing is paid off ahead of schedule.

Revenue-based financing has also been gaining traction in the VC community with several large deals this year alone. In February, France-based Silvr secured a €130 million (about $139.3 million) Series A, while Wayflyer became Ireland’s sixth unicorn with a $150 million Series B. In the US, Capchase raised an $80 million Series B in March.

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