Canopy, the digital rental ‘ecosystem’, has raised over £2m from an investment round led by West Hill Capital.
This brings its total seed capital to over £10m.
The company works by replacing cash deposits with deposit insurance products using the Canopy RentPassport, which details a tenants’ rental history.
Tahir Farooqui, founder and chief executive, Canopy, said: “One of our key goals is to eliminate all forms of rental deposits including £4.5bn of cash tied up in rental deposits and deposit alternative products by December 2021.
“That would mean on average £900 of cash saved per rental household, nationally and £3,000 in London.”
The funding will be used to accelerate partnerships with letting agents and grow a portfolio of financial products.
Having already delivered a free Instant Tenant screening product for the rental market and built a globally scalable platform on AWS, Canopy is planning to use the latest funding to bolster its sales team, invest in emerging technologies and data sources available through Open Banking.
Over time Canopy pledged to launch hyper-personalised financial products for tenants and to expand into a wider range of related services.
Robert Caie, managing partner of West Hill Capital, said: “West Hill is pleased to be participating in a follow-on round of investment in Canopy in order for them to accelerate their position as a leading digital platform for tenants.
“The latest round was oversubscribed within 48 hours of launching.”