Friday, June 21, 2024

Keyzy Raises £3 Million to Unlock Homeownership for Key Workers and First-Time Buyers

Keyzy, the real estate fintech providing a rent-to-own solution to aspiring homeowners, has raised 3 million pounds in a seed funding round. The proceeds will accelerate its purchases of homes and the development of its technology platform, enabling more of its target group of key workers and young professionals to join the property ladder for the first time.

Axeleo Capital and Outward VC co-led the funding round. Seed X also participated in the capital raise alongside existing investors Global Founders Capital and ActivumSG Ventures.

Jeremy Matallah, Keyzy’s Co-Founder, said: “We’re thrilled that Axeleo Capital, Outward VC and Seed X are joining existing investors in backing our solution, which removes a major barrier preventing key workers and young professionals from owning their own home.”

U.K. property prices have risen three times faster than incomes during the last nine years, making it harder to save the 10-20% deposit mortgage lenders typically require to finance a home purchase. The average age of first-time buyers has risen as a result. Keyzy was founded in late 2021 by Jeremy Matallah and Simon Groll to unlock homeownership for those with insufficient savings to access mortgage finance, by offering a unique finance model which shelters customers from rent and property price inflation.

Keyzy gives successful applicants a budget to find a home that suits their needs. It acquires the home chosen by the customer and leases it to them at a fixed rent for three to seven years. Keyzy customers are able to establish a credit history to facilitate a future mortgage application while up to 25% of their rent is converted to lower the locked in buy-back price of the property. Customers have the right to buy the home at the original total cost minus the converted rent that has accumulated.

Simon Groll, Keyzy’s Co-Founder, “This funding round allows us to accelerate home purchases and meet the surging demand from 1,000 applicants and more than 3,000 who signed up to our pre-launch waitlist. It’s an exciting moment in our drive to grow the platform, especially with turmoil in the mortgage market and the Help to Buy scheme coming to an end.”

Keyzy harnesses Open Banking, credit and other customer data to shorten the application process to less than 10 minutes and to accelerate budget and home purchase approvals. It manages the transaction process itself and to date has acquired homes in Greater London, Liverpool, Southeast and Southwest England. The majority of its rent-paying customers are employed in key services, such as education, emergency services and in the National Health Service.

Mathias Flattin, Partner at Axeleo Capital, said: “Keyzy is leveraging data to provide a strong social impact on the U.K. housing market. Rent-to-own is a solution to escape increasing rental prices by securing homeownership but also to keep cash to invest in your own place. The demand is very strong in the U.K. and there are similar opportunities in the rest of Europe.”

Andi Kazeroonian, Investment Manager at Outward VC, said: “We firmly believe that private-sector models of living must evolve beyond the binary nature of outright home ownership or an increasingly competitive and costly private rented sector in order to meet the needs of society. Keyzy’s customer-centric solution acts as a much-needed bridge between renting and ownership, providing the flexibility of renting along with much of the stability, transparency and potential future upside that comes with home ownership. We are already seeing this change the lives of Keyzy’s customers across the UK and therefore couldn’t be more excited to support Jeremy, Simon and the rest of their exceptional team to build on their mission to make the dream of home ownership a reality again.”

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