Obligo, which helps tenants rent an apartment without providing a security deposit, has scored $15.5m in its Series A round.
The round was supported by 83North, 10D, Entr?e Capital, Viola Credit, and other strategic real estate investors.
Funds from the round will enable the company to roll out its platform across the US.
Founded in 2018, the company lets renters submit a payment method for pre-authorisation, similar to a hotel check-in process. If a landlord submits a charge at the end of a lease, Obliigo pays out first, while the renter can repay in full or instalments.
This removes the need of a renter paying a deposit or buying deposit insurance.
Obligo CEO Roey Dor said, ?With the economic impact of the COVID-19 crisis, deposit-free renting has never been more relevant.
?We can help families avoid the burden of paying a security deposit at move-in, or return their deposits in the middle of their lease. Landlords that utilize our technology enjoy reduced operational costs and are able to promote their properties as deposit-free communities, providing a powerful incentive that drives both move-ins and renewals.p>
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