Proptech latest: Deposit alternative Fronted raises another £1 million

Launched in December 2019, the platform has high profile founders and pays a tenant's deposit direct to their letting agent - tenants then pay it back in instalments.

fronted tenancy deposit

Deposit alternative Fronted has raised another £1 million in private equity funding as it takes on competitors tapping the rental market with insurance-based offerings.

The new cash injection takes the start-up’s total funding to £2 million, which will fund its business and help establish strategic partnerships with platforms offering Fronted as a deposit payment option.

Fronted uses open banking and other financial technology and aims to finance deposits directly and more cheaply than existing options, such as credit cards, pay-day lenders and overdrafts, or insurance-backed membership schemes.

The fintech also promises that its offer is lower risk; once a rental loan is agreed, the money is sent directly to the estate agent to be put in the deposit protection scheme – and tenants pay back the cash back to Fronted in manageable amounts.

12 months

Fronted – which went live in February – says that unlike its competitors, renters can pay their original deposit over 12 months. “We believe the insurance model doesn’t protect tenants and is prone to miss-selling,” says co-founder Jamie Campbell. “It is also expensive. For customers bridging between deposits and moving multiple times, the fees stack up.”

He adds: “We are more confident than ever in our mission and this recent support is testament to the hard work of the whole team who have pulled together over the last 12 months to get us where we are today.”

Part of the new cash injection has come from Monzo bank founders Paul Rippon and Gary Dolman.

paul rippon rental deposit monzo fronted“Home is where the heart is and I know as a landlord and former tenant that deposits can be difficult to pull together. That real problem needs solving and the Fronted team are doing that in a caring way using interesting modern technology. I’m delighted to be an investor and be part of their journey,” says Rippon (pictured), who is now chairman at property development bank GBB.

Main pic *(LtoR): Fronted founders Simon Vans-Colina , Jamie Campbell and Anthony Mann

What's your opinion?

Back to top button