A €3m loan won over €10m equity

Gilion operates under bank secrecy, all of our clients identity and financial details are strictly protected. This case details the deal of a B2C Marketplace, choosing debt over equity.

Ticket Size

€ 3,000,000

Business model

B2C Marketplace

Founded

2016

Funding

Equity funding, Gilion Loan

Active markets

Sweden

HQ

Stockholm

Process

2 weeks

“Controlling tempo and strategy was central to these founders, which is why they opted for a smaller ticket from Gilion instead of a big equity deal. ”

– Eithar AlRushaid, Investment Manager

Growth strengths

This business is dependent on attracting both vendors and buyers, and has found success in conquering one big city at a time. Marketing is used to target vendors while buyers are acquired through partnerships, aggregators and events. For a B2C company they exhibit an incredibly impressive cohort build-up, where large parts of historical cohorts contribute to top-line revenue growth over several years.

Fundraising history

Founded in 2016 in Stockholm, this company has had one €6m equity injection. They have since been more or less cash flow neutral.

Capital use case

This company were looking to fund general growth and for means to bridge towards profitability. The money would be dedicated towards market penetration, opening up new local offices and hiring talent.

Why Gilion

When this company came to us they already had a €10m equity offer on the table. Taking the deal would entail aggressive European expansion, and expose the company to a lot of risk. The founders knew that steady city per city roll-outs was a success factor, but the equity deal would require them to enter several markets quickly. Hence freedom to choose their own timing and risk appetite weighed heavily and they opted to go for a Gilion loan at €3m instead.