Online lettings company has hit its £850k investment target on the crowdfunding platform Seedrs.

A total of 189 investors from 16 different companies helped the startup reach its target.

The fundraise included an initial raise of £750k from the MEIF Proof of Concept & Early Stage Fund, managed by Mercia and part of the Midlands Engine Investment Fund, and Mercia’s EIS funds.

The company manages more than 1,500 rental properties across England, Scotland and Wales and has seen 80 per cent subscriber growth over the last two years.

This resulted in £1.1m revenue in 2022, £800,000 of which was recurring revenue from its fixed-fee subscriptions.

The funding will be used to support the firm’s ambitious technology roadmap, while supporting the recruitment of specialist roles across the organisation.

PropTech firm raises £750k to disrupt lettings industry

The PropTech firm was founded by brothers Jonathan and Matthew Daines in 2008.

Jonathan Daines, CEO, said: ““We are delighted with the appetite that has been shown for investment in as a result of our public crowdfunding campaign. Given the strong demand from investors, our board has unanimously agreed to extend our initial funding target.

“In the UK, one in five homes are rented. Traditionally, around 95 per cent of these are let through high street agents, who can charge more than 15 per cent of rental income in fees alone.

“There is growing demand, particularly during these tough economic times, for a lettings service that saves landlords money while providing greater visibility, control and financial protection. We are excited to be in a position to meet this growing demand.”

Having recently launched its new SaaS rental platform, enables landlords to efficiently manage the end-to-end letting process online.

New web platform aims to build trust in lettings sector

The innovative platform includes digital wallets, open banking, and instant messaging to support secure tenant-landlord communications. It also has built-in legal compliance, plus rent protection, giving landlords financial peace of mind.

In addition to founders Jonathan and Matthew Daines, the leadership team includes Kevin Neary, founder of GameStop Group, Matthew Farrow, former financial director of Purplebricks, and Stephen Windsor of Mercia Asset Management.