Renters insurance solution Canopy has sold a 15 per cent stake of its company to Direct Line Insurance.
The deal value was undisclosed, but FinTech.finance reports that the deal was worth around £1.3m.
Founded in 2016, Canopy is an on-demand insurance platform which offers real-time prices for deposit insurance, as well as rewards for a tenant’s good behaviour. The platform works through its RentPassport process which provides landlords with rental and credit history and also gives the tenant a place to pay rent.
Using the ‘passport’ the platform checks eligibility for insurance products, as well as helping improve credit scores. Landlords are also able to access insurance with the DepositFree insurance helping to cover the property from damage.
The capital raised will help Canopy to support its expansion, as it aims to improve the process of renting for renters, landlords and estate agents.
Direct Line Group household development director Adam Whiteley said, “The current rental model asks renters to pay deposits of several weeks’ rent, and we believe Canopy’s use of mobile technology provides an innovative solution towards this. By re-engineering the UK’s rental market Canopy are seeking to enable ‘Generation Rent’ to gain access to better financial services products while demonstrating how technology can be a positive disruptor.”
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