Rental Platform Fronted Secures Investment

November 24, 2021
Share this Post: 

Rental platform Fronted has revealed it has raised more than £20 million (US$ 26.65 million) to continue the development of an app that provides a ‘lifetime deposit’ in the British real estate market.

Revealing the news, co-founder Jamie Campbell explained how Fronted provides a rental deposit that moves home with each customer. it works by securing the return of a renter’s old deposit to Fronted and financing the new deposit in full. Users have 10 weeks to pay off the bridging finance. All – or a portion of it – will come from the return of the old deposit.

Campbell wrote: “We think asking renters to come up with another five weeks’ rent when they already have money protected is ludicrous. Renters should be allowed to pay a new deposit with the one they already have.”

He said that when a renter moves between properties, there is almost always the need to pay two deposits. The landlord who owns the ‘moving in property’ wants a deposit paid as soon as possible to reduce the risk of an empty home. The ‘exiting property’ landlord wants the money to be available for any deductions after the tenant moves out.

The company said that on average, rental deposits in the United Kingdom are £1,300 (US$1,730) , and renters have a double deposit overlap of 35 days.

Fansanara Capital led the latest investment.

Francesco Filia, its Chief Executive Officer, said: “We are delighted to back yet another innovative fintech that is solving a real pain point for consumers.”

“The innovation that Fronted brings to the rental market can benefit all participants from renter to real estate agent to landlord, helping remove a key friction and reducing risk.”

The Fronted app and the lifetime deposit will launch later this year with a small testing cohort. It will roll out across England and Wales during 2022.

November 24, 2021
Andrew is an experienced media and content professional, with extensive publishing experiences throughout Southeast Asia and in the United Kingdom. He has worked on the editorial and content operations for property portals including PropertyGuru and Juwai. He was also the Publishing Director for the Thai language edition of BusinessWeek magazine.

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Cian Russia Map
Cian PLC's First Quarterly as a Post IPO Shows a Company Ready to Scale Up

Cian PLC, owner and operator of the market-leading real estate vertical Cian.ru, has released its first quarterly results since it...

Read More
Bytedance Logo
TikTok Owner ByteDance to Spin Off Real Estate Listings Business

ByteDance, the owner of the popular mobile app TikTok, plans to spin off its real estate listing business as part...

Read More
Costar Vs Zillow Cowboys
Homesnap Unveils Showings Tool as CoStar's Battle with Zillow Heats Up

CoStar Group-owned portal and agent software company Homesnap has announced the rollout of its new Showings tool which has been...

Read More
Boomin For Sale Sign
Boomin Upgrades SmartVal Product

British upstart portal Boomin has announced an upgrade to its flagship seller lead generation product SmartVal which will see 'offline'...

Read More

Popular News