London PropTech lender Proportunity has raised £7.5m funding to meet growing demand for its deposit borrowing product.
The start-up offers home buyers an equity loan of up to £90,000 to be used as a 5% cash deposit, bolstering buying power.
The debt capital injection of up to £7.5m will be used to meet record demand following a post-lockdown housing boom.
The company has also hired Marita Cavalcanti, previously of OakNorth, as its CFO. Cavalcanti will lead the expansion of their debt capital by drawing in more institutional money towards Proportunity’s lending fund.
The firm, one of Tech Nation’s 2020 FinTech cohort, reports it onboarded over 200 new intermediaries during the previous quarter.
Vadim Toader, chief executive and co-founder of Proportunity, said: “When the pandemic hit, we were able to leverage our property market technology to quickly adapt lending decisions, increasing our portfolio’s resilience and continuing to issue loans, where others lenders were forced to pull back mortgage products or put lending on hold entirely.
Douglas Grant, director of lead investor Conister, added: “The UK’s SMEs have shown an incredible amount of adaptability and resilience in the face of changing consumer behaviour as a result of the COVID-19 pandemic, and we are pleased to be able to support Proportunity as it seeks to positively contribute to the dynamics of the UK housing market following the lockdown and to help its customers realise the dream of owning their home.”