Flatfair, a deposit-free renting platform, has collected $11m in a funding round led by Index Ventures.
The UK-based PropTech enables landlords to start renting properties without the need getting a deposit from tenants. Instead, landlords receive up to 12 weeks’ rent worth of protection to cover any issues.
Tenants can rent properties without having to pay a deposit, and instead they simply have to pay a one-off membership and add their debit card as security. If a tenant has already moved in, they can still use Flatfair and get their original deposit back.
Having raised this capital, the firm will expand its services to more renters and landlords. It also expects to grow its team from 25 to 100 by the end of the year.
Index Ventures’ Martin Mignot said, “Around $300bn is tied up in deposits globally, so freeing up just a fraction of this money would make a huge difference to millions of renters who deserve a fairer and more transparent service. But flatfair has the potential to become the ‘Paypal of property rental’ by offering a range of solutions beyond referencing and deposit management.
“There is huge potential for technology to help real estate companies manage operations and revenue in a more streamlined fashion, while offering tenants a better, fairer service. flatfair is already working with global companies like CBRE and Greystar to do this, and today’s announcement will help further expand the flatfair offering. I am very much looking forward to supporting flatfair on an exciting journey ahead.”
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