Flatfair Ready to Change London Rentals with Index Ventures Deal
Flatfair have completed a US$11million (GB£9.1million) funding round with the venture capital fund Index Ventures. The UK based fintech removes the need for cash deposits on rental properties in London.
Along with removing the need for cash deposits for home rental, Flatfair offers instant referencing which streamlines the rental process. The speed of referencing allows landlords to get quick answers and facilitates same-day move-ins.
Instead of handing over cash to one of the UK deposit protection schemes, Flatfair allows renters to become members. The renter pays a one off fee to join, much lower than the month up-front rental traditionally demanded, and adds their debit card details as security. Flatfair also offers the traditional option of holding cash deposits in security to attract the full range of landlords.
The fintech company, lauched in 2016, estimates they have saved around GB£4million (US$4.3million) in renters fees since their inception. Flatfair's CEO Franz Doerr said in a blog post, “Like much of Britain’s housing stock, its rental sector is stuck in the Victorian era. Thankfully, cutting edge payment technology can boost transparency, build trust and make instant move-ins a possibility."
Index Ventures has funded many an industry disruptor, from Facebook and Deliveroo, to Asos. "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," said Martin Mignot for Index Ventures