Flatfair, a UK-based startup that allows tenants to rent a new property without a deposit by securing the tenancy against a debit card, has raised $11 million in a funding round led by Index Ventures.
Founded by alumni from Google, Deutsche Bank, American Express and McKinsey, Flatfair intends to grow its team from 25 staffers to 100 by the end of the year as it expands its offering through partnerships with real estate firms Spicerhaart, Touchstone and CBRE.
With Flatfair, tenants pay a one-off membership fee and landlords get up to double the protection compared to a traditional deposit. The firm claims to have already saved tenants over £4,000,000 in deposit fees.
CEO Franz Doerr, says: “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. This is a great competitive advantage for landlords.
Martin Mignot at Index ventures has billed the firm as the "PayPal of property rental".
“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," he says. "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."