Keyzy, a UK-based rent-to-own startup for key workers, has secured £3 million in a seed funding investment round.
The round was led by Axeleo Capital and Outward VC. Also taking part in the round were Seed X, ActivumSG Ventures and Global Founders Capital.
According to Finextra, Keyzy gives successful applicants a budget to find a home that suits their needs. It then acquires the home chosen by the customer and leases it to them at a fixed rent for three to seven years.
Keyzy customers are able to establish a credit history to facilitate a future mortgage application while up to 25% of their rent is converted to lower the locked in buy-back price of the property.
Customers have the right to buy the home at the original total cost minus the converted rent that has accumulated.
The company uses open banking, credit and other customer data to shorten the application process to less than 10 minutes and to accelerate budget and home purchase approvals.
Keyzy claims the proceeds will accelerate its purchases of homes and the development of its technology platform, enabling more of its target group of key workers and young professionals to join the property ladder for the first time.
Keyzy co-founder Simon Groll said, “The funding round allows us to accelerate home purchases and meet the surging demand from 1,000 applicants and more than 3,000 who signed up to our pre-launch waitlist. It’s an exciting moment in our drive to grow the platform, especially with turmoil in the mortgage market and the Help to Buy scheme coming to an end.”
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