London-headquartered proptech Residently, which aims to digitise the end-to-end customer
experience in the $2tn rental market, has just grabbed £4.5 million in funding. The round was led by Love Ventures alongside existing investors Felix Capital, LocalGlobe (which also invested in Medusa, YuLife and Xelix recently) and A/O PropTech also participated, as well as Seedrs crowdfund.
Adrian Love, Partner at Love Ventures commented: “There’s a gap in the market for a property platform that radically transforms renting, that’s also truly aligned with both renters and landlords. Tom and his team have the ambition and understanding to re-shape the customer experience for renters in ways that are long overdue. We’re excited to be working with Residently to help fund their global expansion and create a world leading home brand.”
Tom Allason, Founder at Residently commented: “In a world where we can secure a taxi, takeaway or trip away in seconds it is nuts that we tolerate friction and uncertainty where we spend most of our time and money. We’re here to transform the experience and economics of renting. We started by digitising the rental journey, next up is solving the greatest problem with renting. Letting renters secure their next home more than a month in advance will eliminate unnecessary stress and double rent for them and costly voids for landlords. We’re delighted to have Love Ventures join our existing investors for this next stage of the journey.”
What issue does it tackle?
The renting market is estimated to be worth $2 trillion, and large businesses are classified sites in this industry. In the UK, there are over 5 million rental homes for now, and it is estimated that the number of renters will outnumber those of owners by 2039. Already, the rental market in London has seen this situation. Given that half the renters in the UK are under 35 years of age, they look for a seamless digital solution for high-quality service.
This is what Residently does in the long-term home rental market, which is the largest and least served segment of consumer spending. Founded in 2017 by Tom Allason, a serial marketplace entrepreneur, known for having founded eCourier and more recently Shutl, the company brings renting into the modern age by digitising the end-to-end customer experience.
Digitises rental experience
Residently’s approach to building a marketplace is to first digitise the rental experience and develop a trusted relationship with renters. Its renting super-app lets renters arrange viewings, take virtual tours, make offers, secure their home, pay deposits and extend or renew their lease all within one app. Broadband and other utilities can be set up in advance along with helpful services like moving, storage, furniture rental, cleaning, and digital locks.
Digitising their renter’s experience enables both agents and property managers to streamline operations saving them £400 per property per year while doubling their landlord’s Net Operating Income through void reduction. Residentiy’s vision is for a marketplace where homes can be secured months in advance with flexible leases, renter reviews, and communications with prior tenants.