Revenue-based lending startup Bloom Group has secured £300m in funding round led by Credo Capital Partners and funds managed by Fortress Investment Group.

The UK-based firm will use the proceeds to becoming a key capital provider to digital entrepreneurs in Europe.

The fintech specialises in offering capital to growth businesses mainly operating online.

Bloom is led by the former head of Morgan Stanley’s fintech enterprise and fintech CEO James Hickson.

The firm describes itself as the next generation of revenue-based lender.

Bloom said its pricing model and range of product offerings, which enable clients to pay only for what they use, sets it apart from others.

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Additionally, the lender sees ‘enormous’ potential to scale with exposure to the European and the US market.

Hickson said: “We are not another revenue-based lender. We estimate that eCommerce merchants have incurred £125-£200m in excess fees based on the current pricing status quo.

“That is money that could have been used for more stock, increased ad spend, or customer incentives.  We saw an opportunity to innovate rather than simply join the herd. So we did.”

As part of the transaction, Credo co-managing partner Christopher Dailey will join the Bloom’s board.

Dailey said: “Demand for eCommerce lending has expanded in Europe. We wanted to make an investment in a platform that was moving the product forward and combined all of the great technology and analytics you expect with a really differentiated product and approach.”