PropTech platform EasyKnock has netted $3.5m in its Seed round of funding and $100m through debt financing.
The seed equity was supplied by Montage Ventures, Crestar Partners and Blumberg Capital; however, the debt financier was not revealed.
US-based EasyKnock is a commercialised, residential sale leaseback program. The platform enables homeowners to sell this home while remaining in the property on flexible rental terms. Short and long-term lease periods are made and repurchase options are also available to let customers regain ownership when the wish.
Launched in 2016, the company buys homes at market value and gives the seller quick access to cash. The purchase is part cash from the sale, part purchase option, providing customers with a path back to ownership.
Leases can be renewed annually, and option prices also increase over this period at a fixed amount. The company expects to reach profitability in 2019.
The equity line will be used to support customer growth and expansion into new markets, while the debt shall help increase real estate closing on the platform.
One of its new products in the pipeline is an AI-driven qualification and underwriting engine to identify target customers. Data will also be used to extract new value opportunities for customers and bolster its advocacy base.
EasyKnock is also looking to partner with mortgage companies to pay a referral fee for rejected customers.
Montage Ventures partner Matthew Murphy said, “U.S. consumers are sitting on over $14.5 trillion in home equity, yet there are few options for them to access this capital. We’re excited to partner with EasyKnock to offer this unique platform as it will help homeowners unlock the value of their home without having to move.”
Last year, the company raised $1.5m in a funding round which helped to expand the company’s team and enhance its product.
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