Proptech company Flatfair
has raised $11m in a funding round led by Index Ventures, and which will be
used to help expand its deposit-free renting platform.
Flatfair says the funding
will help it to scale ‘far and wide’ in order to bring deposit-free renting to
everyone, while it is also planning a major recruitment drive to expand its
team from 25 to 100.
Commenting on the deal Martin
Mignot at Index Ventures, which has a portfolio of names such as Facebook and Deliveroo,
said “Around $300bn is tied up in deposits globally, so freeing up just a
fraction of this money would make a huge difference to millions of renters who
deserve a fairer and more transparent service. But Flatfair has the potential
to become the ‘Paypal of property rental’ by offering a range of solutions
beyond referencing and deposit management. There is huge potential for
technology to help real estate companies manage operations and revenue in a
more streamlined fashion, while offering tenants a better, fairer service.”
Flatfair’s no-deposit product is pretty much a no-brainer when you think about it – being straight from the ‘why did nobody think of this before’ school of entrepreneurial ideas. In future it’s not unlikely we will all be asking how on earth the lettings market managed to work when tenants had to stump up a physical wad of cash as a deposit.