CapRelease raises £1.7m to expand embedded finance in UK logistics

Largest early-stage LendTech funding in Europe over the past two years

CapRelease, a startup operating at the intersection of eCommerce and FinTech, has completed a £1.7 million pre-seed investment round aimed at providing more accessible funding solutions for small and medium-sized online retailers. The funding round was led by a global family office with a strong focus on FinTech and existing investments in leading UK neobanks. A group of experienced angel investors also participated in the round, which now ranks as the largest early-stage LendTech investment in Europe over the past two years.

The platform introduces an embedded finance model by directly integrating into logistics systems, enabling capital access based on real-time stock valuation and financial performance, rather than traditional credit scoring methods. The approach comes at a time when the £180 billion UK eCommerce sector continues to grow but still presents capital access challenges for many small businesses.

Alternative credit model based on stock and revenue

One of the core offerings of CapRelease is its blended inventory and revenue-based lending structure. This model allows eCommerce retailers to access working capital more quickly, bypassing conventional requirements such as personal guarantees or equity dilution. By drawing on both real-time inventory data and ongoing sales performance, the platform aims to provide funding that aligns more closely with business operations.

The company’s model is particularly relevant given the projection that the global eCommerce market will surpass £5 trillion, according to Statista. While online retail continues to scale globally, many high-growth SME retailers remain underserved by traditional lending institutions. CapRelease is positioning itself as a solution to this gap, using a data-driven process to offer capital where and when it is most needed.

AI-powered funding decisions and logistics integration

With the newly raised funds, CapRelease plans to scale its operations in three core areas: expanding its reach to fund more eCommerce companies, further developing its AI-powered underwriting system, and building deeper partnerships within the logistics sector.

According to a company statement, “Retailers need a finance solution that moves at the speed of eCommerce – where access to capital is fast, frictionless, and fit for purpose. Our AI-driven underwriting technology delivers funding decisions in under 24 hours, helping brands restock, invest in marketing, and scale without unnecessary delays or equity dilution.”

By embedding finance within the logistics infrastructure, CapRelease aims to support thousands of online sellers across the UK, contributing to a more agile and responsive digital commerce environment.