Jetty, a fintech startup that aims to provide renters with flexibility in paying rent, raised $23 million through a round of funding co-led jointly by Flourish Ventures and Citi.
Jetty's total investment since 2016 has risen to $78million with this financing. Credit Ease, K5 and Ribbit Capital are also participating in this latest growth round. Khosla, Farmers Insurance Group, Ribbit Capital and Khosla were among the previous backers.
New York City-based startup, 100 strong, has created a way for renters to pay rent on time. It offers a similar offering to the buy now, and pay later (BNPL), model that consumers increasingly use online, at the point-of-sale, and in person.
Renters have the option to pay rent on time and can then pay Jetty the money in installments or a lump sum up to the 24th of each month. Renters do not pay late fees or interest, but rather pay a monthly subscription fee of $15 to $25 depending on their risk profile. Renters who fail to repay the money within the agreed time frame will be denied the right to borrow any more the next month.
Mike Rudoy, co-founder and CEO of the company, stated that the monthly fee is much lower than any late fees if rent is not paid on schedule.
Renting is a significant portion of an average renter's monthly income. This is why renters spend the most money on rent in a given month. You would expect there to be some financial product that allowed them the freedom they need to pay their rent on time and without being penalized.
He said that the offering is closer to traditional BNPL than actual BNPL.
Rudoy explained that we will pay rent in full for the renter on the first day of each month. This gives property managers the cash they need when it is needed. The renter has 24 days to repay it on a schedule that suits them.
Jetty Rent partnered with Cortland to launch the beta version of the service to residents in a variety of properties.
The startup has now launched the offering to the general public. Jetty Rent, the latest product from the startup platform, offers low-cost renters insurance and security deposit replacement.
Rudoy stated that the company's mission is to make renting more affordable, flexible and affordable. We are a financial platform that offers financial services. Every product we launch is designed to provide value for both renters and property managers.
Rudoy stated that Jetty has transformed from an insurtech company to a lender with this move. The loans will be provided by Cross River Bank.
TechCrunch was told by he that they are currently working to add credit and lending to the company because it is historically considered an insurtech business.
Rudoy says that Rudoy's company provides all three products to property managers, which gives it an advantage.
TechCrunch told him that this makes us stand out from other financial service companies working in the same area and solving the same problem set. We are the only company that offers both a flexible rent product and a security deposit option under one roof. This makes it easier for property managers to integrate and onboard with us. This means that renters will see fewer brands.
All products are paid for by the renters, and property managers work together in distribution.
The company currently has agreements with more than 2.2million property owners and managers. According to Alex Vlasto (VP of marketing), Jetty has experienced a 193% increase in the number of contracted units since it began to build its network with property partners in 2017. Cortland is also a partner of Jetty, as well as AMLI Residential.
Emmalyn Shaw is the managing partner at Flourish Ventures. She notes that more than 70% of Americans live from paycheck to paycheck.
She said that stable housing is an important component of financial security.
Shaw said that Jetty is the only company to offer more than a single solution and embed a rich and differentiated range of financial offerings including rent flexibility, security deposit options, and rental insurance.
Jetty's unique consumer insights, differentiated pricing and increased consumer loyalty have given it a competitive edge, she wrote via email. Their consumer reach is unmatched through Cortland and other top property management companies.
Other startups have raised capital to help renters. Sugar, a startup that plans to transform apartment buildings into interactive communities, has recently raised $2.5 million in seed financing. RentCheck, which has developed an automated property inspection platform, raised $2.6 million in seed funding.
