flatfair, a fintech scale-up allowing tenants to instantly rent a home with no deposit, has raised $11m (£9.1bn) in a funding round led by Index Ventures, as it looks to expand its deposit-free renting platform.
The company plans to develop a host of new features by hiring a number of product engineers, data scientists and business development specialists.
flatfair’s deposit replacement initiative, which offers 12 weeks’ worth of protection, is designed for tenants who do not have all the funds up front for a traditional tenancy deposit.
The payment technology firm believes that its deposit replacement scheme can help strengthen ties between landlords and tenants.
Franz Doerr, co-founder and CEO at flatfair, said: “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. Renters and policymakers have been trying desperately to improve standards across the market.
“Now, with institutions like Legal & General and LaSalle funding Build-to-Rent homes alongside thousands of highly professional private landlords, we’re seeing higher standards of service filter through the entire market.”
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