Returbo secures debt and equity round

The fresh capital will be used to expand Returbo's offering and accelerate the firm's revenue growth. The debt financing was provided by HEGCF and Generis, BDMI led the equity commitment that was provided by existing backers.

BDMI previously invested in the German start-up in July 2012 with a seven-digit financing round.

HEGCF usually backs companies with a secured debt loan of €5-50m via its European Growth Capital Fund, as long as a co-investment of equity is also provided. Loan coupons stand at around 12-14%. HEGCF is the debt financing subsidiary of Harbert Management Corporation, a global investment manager that operates in real estate, private capital and absolute return.

Generis typically offers venture debt loans on fixed terms that have to be reimbursed on monthly basis, with annual interest rates of between 10-15% and warrants between 10-20% of the amount of the loan.

Company
Returbo offers offers deals on B-stock, returns, overstocks, end-of-lifetime, refurbished and demonstration products on its online platform. Berlin-based Returbo sells items to indidvidual customers as well as other businesses. It sources its products from e-commerce retailers, distributors and manufacturers.

Founded in 2010, the company now operates a profitable business model, HEGCF said in a statement.

People
Simon Schmid is the founder and CEO of Returbo. Jan Borgstädt is head of European ventures at BDMI. David Bateman led the deal for HEGCF.

Adviser
Company - LD&A Jupiter (Corporate finance).

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