Futurerent raises $9M for real estate investor lending model

Australian property fintech Futurerent has raised AU$9 million in its Series A round as it seeks to provide property investors with a way to secure an advance on their rental income.

The round was led by OIF Ventures with participation from BridgeLane Group, Mulpha International, iPartners, MFO Investments and Second Century Ventures.

The investment comes on the back of “rapid growth”, the firm says. Founded in 2019 by a former bank executive, Futurerent offers property investors the opportunity to receive up to AU$100,000 in rent upfront to carry out property improvements or purchase another property. Futurerent says the application process takes a few minutes, and landlords can get paid in just two days.

For example, a landlord receiving AU$450 a week could withdraw closer to AU$47,000 towards the costs of another portfolio property or AU$23,000 towards other costs such as renovations. Futurerent charges a fixed rate of 6% each year on the advance rent.

“Allows investors to withdraw and access funds”

“Since 2019, we’ve been giving real estate investors an easier way to cash out and access the money they need to grow their wealth,” Futurerent said in a statement. “This new round of investment will allow us to expand our national presence, launch new products and build additional integrations for our partners.”

And Futurerent founder Godfrey Dinh was quoted as saying: “We’re a bit different to a lot of other fintechs in the market. With zero losses and zero defaults, we help a premium segment of the market access capital to grow their wealth.

“The business has a large total addressable market and we have proven there is significant demand from property investors looking to access their rental income.”

Futurerent is the latest property-focused fintech

Futurerent’s AU$9 million raise represents the latest success for companies at the confluence of fintech and proptech. Financial solutions for landlords and tenants are growing, particularly as a means of pre-paying cash for deposits, as evidenced by the increasing frequency of fundraising rounds.

Last year, the co-founders of Monzo were among the investors in rental deposit fintech Fronted; the UK-based company had already announced plans to expand its features, having launched on Yobota’s core banking platform. And last month, German insurtech Garentii secured €1.9 million in seed funding for its deposit insurance product that gives tenants a monthly payment alternative to traditional cash deposits.

Futurerent flips that particular coin on its head, offering a way for landlords to access credit using their future rental returns. “Futurerent unlocks capital for property owners that was simply not available before,” says OIF Ventures, which backed this latest round. “We invested early and are excited to double down and continue to support this exceptional founder and opportunity.”