Deposit Guarantee platform raises €50m to expand to new sectors
- In News
- 12:30, 21 October 2021
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Insurami, a Deposit Guarantee platform for the commercial property industry, has announced that it has raised £42 mln (€50 mln), consisting of debt alongside existing equity investment, to expand its products across the entirety of the commercial property sector.
The platform, which offers commercial real estate tenants an alternative to locking up cash in a deposit, while providing landlords the equivalent level of security and risk management as a traditional cash deposit, has seen investment from London-base owner-managed alternative asset manager Fasanara Capital, joining existing investors including Global Founders Capital, Entrepreneur First and Clocktower Ventures.
Insurami has experienced momentum across the real estate sector throughout the pandemic including institutional real estate landlords such as The Howard De Walden Estate, as well as flexible workplace operators including Level39 and Huckletree, signing up to the platform.
The funding will enable Insurami to expand its Deposit Guarantees to all commercial real estate sectors, including retail, logistics and operational real estate including dark kitchens, as well as pursue growth plans across the UK.
Deposit Guarantees are designed to remove pain points around deposits, enabling deposit-free and seamless commercial leasing. Insurami estimates that there is over £10 bn held in commercial real estate lease deposits, with Deposit Guarantees able to free up this cash and allow tenants to invest the money saved into their business instead.
Insurami’s Deposit Guarantee platform also helps landlords and agents to close deals faster whilst helping tenants to quickly and flexibly secure new space whilst saving over 95% on upfront costs. The platform also captures data around risk profiles, enabling landlords to gain greater visibility on tenant financial performance throughout the lease.
Majed Chaaraoui, CEO and Founder of Insurami, 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.'
Insurami’s Deposit Guarantees are 100% cash-backed and are available for any commercial lease. Deposit Guarantees can be used instead of a cash deposit or used in addition to cash to enable the tenant to meet the deposit requirement. Swapping out a big upfront cost for a small monthly fee, occupiers are able to save over 95% on upfront costs, allowing them to invest the money saved into their business instead.