flatfair raises $11m in round led by Index Ventures to expand its deposit-free renting platform

• Significant developer and engineer hires will create new features and services
• Tenants can save thousands of pounds when moving and secure homes instantly
• Landlords rent homes 25% quicker and get up to 12 weeks protection
• Greystar, CBRE, Urban Splash, Places for People already offering flatfair

flatfair, a fintech scale-up allowing tenants to instantly rent a home with no deposit, has raised $11m in a funding round led by Index Ventures, as it looks to become “the PayPal of property rental”.

Other participants in the Series A round included Revolt Ventures; Adevinta, the biggest marketplace specialist in Europe; Greg Marsh, founder of Onefinestay; former Savills CEO Jeremy Helbsy; and Taavet Hinrikus, founder of TransferWise.

The company plans to hire a significant number of product engineers, data scientists and business development specialists. It will develop a host of new features as it looks to expand its platform with a focus on making renting fairer and more transparent for landlords and tenants.

With flatfair’s payment technology – already used by major real estate companies including Greystar, Places for People and CBRE – tenants can secure their tenancy with just their debit card, in the same way as you would when checking in to a hotel. In exchange, tenants pay flatfair a small membership fee.

This massively cuts down upfront moving costs and gives tenants a trust score they can take with them to unlock future discounts. Any deductions made upon exit are totally transparent because flatfair is fully integrated with the government-authorised deposit protection provider mydeposits.

Renters in England and Wales shell out £1,110 on average for a deposit, according to the Tenancy Deposit Scheme, and can pay twice due to the delays of getting their previous deposit back.

The core of flatfair’s platform is a smart collection system enabling it to constantly receive updated debit card information from the issuing bank. Payments can be chased even if tenants switch card or accounts and if flatfair can’t collect owed monies from the tenant, it is insured by an A-rated insurer.

The company was co-founded in 2017 by Franz Doerr, previously at Deutsche Bank and McKinsey & Company, Google alumni Daniel Jeczmien and former King developer Bartosz Alksnin back in 2017.

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.”

Martin Mignot, at Index Ventures, 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 streamline operations and revenue management, while offering tenants a better, fairer service. flatfair is already working with global companies like CBRE and Greystar to do this and I am very much looking forward to supporting the company on an exciting journey ahead.”

Martin Mignot, a partner at Index Ventures, will join flatfair’s board. Mignot has invested in electric scooter firm Bird, lift-sharing service BlaBlaCar and also serves on the boards of consumer tech companies including Deliveroo, Revolut, and KRY/LIVI, He was previously a director of Trainline, Swiftkey and Drivy.

flatfair partnerships also include Places for People, Touchstone, Urban Splash and Spicerhaart Group, the UK’s leading independent estate agency company.

Dave Butler, CEO at the UK Apartment Association (UKAA), said:

“We’re all familiar with checking into hotels and swiping your card to pay for the minibar – renting a flat should be as simple. Britain is seeing huge growth in the build-to-rent sector – developments of apartments and houses owned by a single institutional investor and operated by a professional manager focused on providing a quality experience for their customers. There is a huge demand for services and products like deposit replacement that help drive up the level of service and experience for the country’s 9 million renters.”

Sharief Ibrahim, director, Residential Agency, CBRE, said:

“As a sector, we have to improve service for the millions who rent and embracing payment technology to cut deposits and boost transparency is critical. Cutting down pointless admin and enabling renters to secure homes instantly, can only be good for both landlords and tenants.”

Eva Kivit, regional operations manager at Greystar, said:

“The growth of build-to-rent in Britain is great for renters, as it offers certainty, high quality amenity spaces and fantastic value. We’re committed to embracing digital technology to enhance our customers’ experience and we see platforms like flatfair playing a crucial role in the evolution of Britain’s rental market.”