Short-term rental FinTech Topkey raises $5.2m in seed funding round

Short-term rental FinTech Topkey raises $5.2m in seed funding round

Topkey, a financial operating system designed to ease the operations of short-term rental property managers, recently announced a successful seed funding round.

The company successfully raised $5.2m in its seed round, with Felicis taking the lead among the investors, according to a report from Short Term Rentalz. Other prominent contributors included Andreessen Horowitz, Y Combinator, Liquid 2 Ventures, Assurant Ventures, and Derive Ventures.

Topkey’s unique business model revolves around providing a comprehensive financial operation system to property managers. Initially launched as a marketplace for property owners and managers, the company pivoted in mid-2021 to focus on financial operations. Their platform, currently in a beta phase, offers an array of services, including billings, payments, and expense management. The aim is to streamline the process of payments, banking, invoicing, and business intelligence for property managers, thereby making their workflow less fragmented.

The newly acquired funds are earmarked for several purposes. Topkey plans to integrate with more property management systems in the vacation rental space, and there is potential for expansion into other hospitality verticals.

Topkey’s platform promises to revolutionise how property managers operate by automating tasks like expense categorisation by property, issue cards with custom limits, tag receipts, and earn cashback. It also seeks to end manual data entry by seamlessly importing transaction details into accounting software.

In conversation with Axios, Topkey co-founder and CEO Jonathan Sukhia said, “It’s a very messy process and errors are rife. Property managers run at 10 to 15 per cent margin. They’re small businesses, often fast growing so there’s a lot of opportunity, but it’s not a business where they can afford to flush away thousands a month.”

Prior to this recent seed round, Topkey had raised funding to the tune of approximately $7m, with the startup being less than three years old.

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