Deposit replacement service Flatfair has raised £9 million in Series A funding from a group of six investors that includes the recently-departed Savills CEO Jeremy Helsby.
Others in this latest round include founder of short-term upmarket lettings website OneFineStay.com Greg Marsh, and Taavet Hinrikus, who co-founded foreign exchange platform TransferWise.
Since launching in 2017, Flatfair has raised money twice before from seed investors during its start-up phase.
Flatfair is one of several tech platforms offering landlords and letting agents the ability to offer ‘deposit free’ renting. All have slightly different models, but Flatfair enables tenants to pay a one-off membership fee that equates to a week’s rent.
In return tenants do not have to pay a cash deposit, and landlords are covered via Flatfair’s insurance-based product which provides protection equivalent to 12 weeks’ rent, plus free recovery of any additional claim above that sum and a dispute resolution service provided by Hamilton Fraser.
The new cash is to be spent on increasing the size of its product engineer team and developing new features.
Franz Doerr t(picture centre, above) told The Negotiator that: “The fundamental idea is to streamline processes around the tenancy to create revenue and savings opportunities for landlords and agents, whilst promoting a better customer experience, affordability, and fairness for tenants.
“We’re working on a host of exciting new features that we’ll be able to talk about in the coming months, but we see opportunities to automate more functions within the lifecycle of a tenancy and think there are a number of big efficiency savings to be made by unifying old systems, dumping old paper systems and streamlining cumbersome admin.”
Read more about Flatfair.