Deposits a ‘barrier’ for tenants and landlords, Insurami says after £42m fundraise
The deposit guarantee platform, which tenants can use to replace upfront deposit payments for real estate, has raised £42m to fuel an expansion across every commercial real estate sector.
Used by flexible workspace operators such as Level39 and Huckletree and traditional landlords such as the Howard De Walden Estate, Insurami replaces the deposit a tenant pays – either entirely or in part – with a monthly fee.
The CEO of the company, Majed Chaaraoui, said that deposits are stopping the right tenants from accessing the right spaces and that Insurami hopes to set a new market standard for commercial leases in the UK.
Insurami’s central pitch to tenants is that it allows them to save “over 95%” of their upfront deposit costs, spreading them out over time and giving them more money to invest into their business.
For landlords, the platform – which has worked with agents such as Kontor and Hedge – said it provides “the same level of protection” as a cash deposit with 100% of claims paid out within 10 business days.
Chaaraoui said: “As the country re-opens, we’ve seen a surge in demand for deposit guarantees from both landlords and businesses.
“The post-Covid leasing environment has reinforced the need for tenants and landlords to find more ways to work together, and we believe that deposit guarantees have a big role to play in the future of commercial leasing.
“This funding allows us to continue our growth plans as we progress towards setting a new market standard for commercial leases across the UK. As the real estate industry and UK businesses look to bounce back from Covid, deposits can be a major barrier to getting the right companies in the right spaces. We provide a solution that helps both sides.”
The funding, a combination of debt and equity, includes backing from fintech investor Fasanara Capital, Global Founders Capital, Entrepreneur First and Clocktower Ventures.
Insurami said the investment will enable it to expand to all commercial real estate sectors, including retail, logistics and operational real estate such as dark kitchens.