Six-figure funding for insurtech company changing how rental deposits work

A company looking to change the way landlords, agents and tenants handle deposits has secured a six-figure investment.

Hackney-based insurtech firm Reposit raised £500k in a funding round that included investors Andrew Weisz, from Weisz Investments, and Michael and Simon Blakey of Avonmore Developments.

Founded in 2015, Reposit has raised £950k to date. It will use the latest investment to hire new staff and grow its business across the UK rental market.

Reposit offers tenants an alternative to the standard tenancy deposit. Renters buy a ‘reposit’ with one week’s rent, plus an annual fee of £30 if they stay for over a year at the property.

The landlord, meanwhile, becomes a named beneficiary on Reposit’s insurance policy, protecting them for up to six weeks’ rent for anything a deposit would have covered.

Reposit’s own research has shown that 49% of deposits are borrowed. Sources include family, loans or payday loans.

When moving between properties, tenants typically have to provide a deposit for the new contract before the release of an old deposit, potentially causing cashflow problems.

Jude Greer, chief exec and co-founder of Reposit, said: “Everyone at Reposit has been a tenant and has felt the pain of trying to claw together a tenancy deposit to move into a new property.

“Paying for one deposit, and waiting for an old one to be released, really highlights a cash flow issue for a lot of people, and there is £4.5bn of dead cash sitting in tenancy deposit schemes. Cash that could actually have a massive impact if made available to tenants again.”

Jude continued: “We also understand that landlords require security and commitment from tenants which influenced how we structured our solution and moved away from a traditional insurance product that would indemnify a tenant, increasing the moral hazard risk.

“By easing the burden of a six-week deposit, we’re speeding up an entire process and helping more people rent property quicker. A win-win for all involved.”

Andrew Weisz commented: “Having worked with Reposit over the last two years I was happy to have the opportunity to invest again as the business begins to scale.

“As the UK government increasingly focuses on the efficiency of the private rented sector, deposit replacement is rapidly coming to be seen as a key area of innovation. Reposit are ideally positioned to succeed in this space.”

Avonmore Developments partner Simon Blakey, who has joined the Reposit board, said of the company: “Reposit is being lead by two strong and capable co-founders, Jude and Brendan, who are focussed on doing right by their customers and for the industry.

“The deposit replacement scheme space is still very new, and their passion and customer-centric approach will be key in ensuring they remain a market leader.”

Alongside the investment, Reposit has also announced a partnership with Lloyd’s of London insurer Canopius.