Reposit takes $520,000 to rethink tenancy deposits

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 rent as a deposit rather than the average of a six-week deposit, plus a month 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 rent in advance and agency fees is one of the largest financial outlays theyll 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.

Copyright ? 2016 FINTECH GLOBAL

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