Rent2Cash, an Italian start-up that offers up to three years in “rental advance” services to landlords, announced its closing on a €3 million (roughly $3.25 million) pre-seed round and the launch of its operations in Italy.
Rent2Cash offers upfront payouts of up to three years in future rents to owners of rented properties. In exchange, it manages rent collection, provides dedicated assistance to clients and secures a formal liquidity proposal within 10 days of the client’s request.
The pre-seed round is financed by a coalition of Italian banking groups, institutional investors and business angels, and the funds will be used towards the acquisition of the first rental contracts, the development and launch of new products and services – with a focus in the commercial property sector – and the consolidation of its technology platform. The company also plans to recruit 30 new hires across its product, sales and marketing teams.
The company added that the newly raised funds will be used to expand VAULT, its proprietary algorithm that analyzes more than 50 variables to examine the state of the property, the rental agreement, the owner and the tenant’s scoring, offering clients dynamic and personalized pricing. The algorithm will soon include new asset classes and expand into the commercial property sector.
Banca Finint, the Italian financial institution, services the securitization process and operates as an advisor and investor for the company. The bank was instrumental in rolling out the first securitizations in this sector.
“We are thrilled to back Rent2Cash, and to become advisors, investors and servicer of the securitization,” said Paolo Gabriele, head of financial institutions structured credit and specialized lending at Banca Finint. “The investment is in line with our commitment to support new solutions in the financial market and offer our expertise to promising and innovative businesses. Rent2Cash platform represents a unicum in this segment, operating in an untapped sector with huge potential for growth. The securitization market is an area in which Banca Finint has considerable expertise and a leading position in the Italian market. We believe that it’s a financial instrument of choice for investors looking to support disruptive players in the fintech space.”
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