Online letting platform lettingaproperty.com has announced the next phase in its growth strategy, launching a fundraising round with equity crowdfunding company Seedrs. The move follows an initial raise of £750,000 in mid-2022 from the MEIF Proof of Concept & Early Stage Fund.
Founded by brothers Jonathan and Matthew Daines in 2008, the online letting platform claims to have over 20,000 registered landlords, more than 1,500 rental properties under management, and collects over £24m in annual rent across England, Scotland and Wales.
Over the last two years, lettingaproperty.com adds that it has seen 80% subscriber growth, generating £800,000 in annual recurring revenue, and £1.1m turnover in 2022. This, the company says, represents just over 0.1% of the serviceable available market, but the intention is to service 1.2% of this market – that is in the region of 10,500 recurring revenue subscribers.
To support this growth, the company has assembled an experienced leadership team, including Kevin Neary, founder of GameStop Group, Matthew Farrow, former financial director of Purplebricks, and Stephen Windsor, of Mercia Asset Management.
The company recently launched a new SaaS rental platform, enabling landlords to manage the end-to-end letting process online. This also provides a marketplace for landlords and tenants to securely connect, with features including instant messaging, digital wallets, and OpenBanking.
Funds raised in this round will support marketing activity and product development – designed to nurture, retain and grow the subscriber base, boost recurring revenue, and capture greater market share.
Jonathan Daines, founder and CEO, lettingaproperty.com, commented: “With our proven business model, strong leadership team and innovative rental platform, we’re ready to scale at pace. On the back of our Mercia capital raise, we are excited to open this opportunity to the wider investment community, prove our potential to grow, and progress to the next investment round.”
