Renters app Canopy has reportedly collected £2m in a funding round, which it was able to raise within just 48 hours.
West Hill Capital led the investment and brings Canopy’s total seed funding to £10m, according to an article from UKTN.
This equity infusion will be used to support the formation of new partnerships with letting agents and increasing its product suite, the article states.
The mobile app aims to reduce the costs of renting and reduce the friction of applying for a new property. A consumer simply fills out their screening details in a Rent PassportTM, which takes between 10 and 15 minutes, and then shares it with their new letting manager or landlord whenever they move. Renters can also replace their deposit with an insurance policy.
Canopy founder and CEO Tahir Farooqui told UKTN, “One of our key goals is to eliminate all forms of rental deposits including £4.5bn of cash tied up in rental deposits and deposit alternative products by December 2021. That would mean on average £900 of cash saved per rental household, nationally and £3,000 in London.
“Open Banking provides a tremendous opportunity to use data for the good of the consumer. Letting agents and private landlords have similarly faced significant regulatory, financial, and digital challenges. Having reduced tenant screening costs by 90% for letting agents in 2019, we are now committing ourselves to helping them grow top-line revenue over time. We are building our platform in consultation with the letting agents and build-2-rent (B2R) players.”
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