Security deposit insurance startup Rhino scores $95m investment

Rhino, which offers security deposit insurance policies, has collected $95m in its new funding round, which was led by Tiger Global Management.

Funds from the round will be used to double its headcount to 200 and help it reach $500m in direct savings for renters.

This investment comes after a strong period of growth for Rhino. Over the past 18 months, the company has tripled the size of its team to reach 100 employees and expanded from 200,000 homes to over one million, it claims.

Furthermore, the company has witnessed a 1,500% growth in contracted annual recurring revenue, rising from $4m in January 2019 to $60m in January 2021.

It claims this growth has been driven by a need for renter support during the Covid-19 pandemic.

Launched in 2017, the company offers a security deposit insurance policy to act as a replacement for a cash security deposit for renters. Instead of the deposit, Renters pay Rhino a small monthly fee, from as little as $1.50 a month, and Rhino insures the property owner for damages that might occur and loss rent.

Rhino CEO Paraag Sarva said, “Putting renters first in our business has given us the opportunity to become renter advocates at a national level.

“We advocate for renter-friendly legislation like Renter’s Choice because nearly half of Americans are unable to afford a $400 emergency expense and that makes housing affordability one of the most pressing issues in America right now. With $45 billion sitting locked away in escrow accounts, unusable for both renters and property owners alike, we need common-sense legislation that can put that money back into the pockets of people who need it the most–renters.”

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