Reposit, an alternative tenancy deposit platform has raised £400,000 ($520,000) in a seed funding round.
The financing comes from London accelerator and early-stage VC Seedcamp and the government-run London Co-Investment Fund, as well as angel backers.
The company allows tenants to pay just one week’s rent as a deposit rather than the average of a six-week deposit, plus a month’s rent and agency fees. If there are damages to the property during the tenancy Reposit pays the landlord, with the tenant then becoming liable to Reposit.
“For many renters, paying a six-week deposit in addition to a month’s rent in advance and agency fees is one of the largest financial outlays they’ll make. 97% of deposits are returned in full, only to be re-registered once a tenant moves again and the system is an administrative burden for landlords and letting agents alike,” said Reposit co-founder and CEO Curran McKay.
Reposit says it will use the capital to raise awareness, onboard more letting agents and add more service to the platform.
The startup is a graduate of Newcastle-based accelerator Ignites’ first batch of London companies.
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