PropTech is not a name you hear often, it intends to assist landowners, homeowners, and tenants in better managing their assets.
In summary, PropTech aims to take ownership, renting, or working in a building easier and more effective for everyone, whether it’s through eliminating property management paperwork or simplifying tenant-landlord transactions. The sector is beginning to gain traction and get due investment.
Spleet, a Nigerian real estate software firm, has acquired US$625,000 in pre-seed capital to help it launch a new product that gives tenants low-interest loans to assist them to pay their rent.
Spleet was established by Tola Adesanmi in 2018 in response to a need in Lagos for adjustable rental payment alternatives rather than the customary one- or two-year advance payment options, allowing homeowners to rent to verified persons while simultaneously assisting people in finding places to stay. Landlords can use the service to check and evaluate tenants, as well as automate rent collection.
Also read, Nigerian Startup, Spleet transits into Self-hosting Platform, plans Expansion
Spleet has secured US$625,000 in an oversubscribed pre-seed round headed by MetaProp VC, with Future Africa, FEDHA Capital, VFD Group, Moonshot VC, HoaQ, Squarefoot CEO Jonathan Wassersturm, Flutterwave CEO Olugbenga ‘GB’ Agboola, and others also participating.
Spleet will utilize the funds to develop its latest rent financing product, “Rent Now Pay Later,” as well as other solutions that will make residential leasing procedures more simple. The new program will provide tenants with low-interest loans to help them pay their rent.
After launching a marketplace in 2019, Adesanmi stated that they realized the difficulties in the rental market were beyond the marketplace’s ability to remedy.
One of the most pressing concerns for tenants is cost. Most tenants earn their money on a monthly basis and so cannot afford to pay their rent in advance for a period of 1-2 years.
Adesannmi went on to say that they chose to address this by creating a financing option called “Rent Now, Pay Later,” which allows tenants to get apartments for as little as 1-2 months’ rent.
They are presently beta testing their rent now, pay later offering with a small group of tenants, and so far they are thrilled with the outcome. In the following months, Spleet will expand this to a larger market of tenants and potential tenants.
Spleet had differentiated itself as a best-in-class product within Nigeria’s “nascent and growing” prop-tech sector, according to Zachary Evans, co-founder, and general partner at MetaProp.
According to Zachary, it is still extremely hard to rent apartments effectively, and they believe that by eliminating this barrier, Spleet will build a large company. He expressed his delight at the investment in Spleet as well as the company’s broader entry into the West African proptech market.
Techbuild’s Take
Property technology popularly called PropTech is a phrase that describes the broad utilization of tech in real estate markets.
It pertains to the plethora of technology businesses striving to alter the real estate market, mainly on a fast-changing digital ecosystem and ever-shifting consumer trends and patterns.
PropTech strives to improve asset management for property owners, landlords, and tenants.
In recent times, a wide variety of new technologies like artificial intelligence and big data have advanced the current wave of PropTech.
Many PropTech businesses are now striving to innovate and strengthen the industry in a variety of sectors within the real estate sector.
Residential real estate technology progresses, for instance, concentrate on property listings, buying, and financing, with features such as remote loan signing possibilities, virtual property inspections, and real-time listing notifications.
They can also help with safe fund transfers and other sorts of document management that are more centralized.
PropTech allows renters to pay rent and lease payments using their mobile devices, and it also allows landlords to learn more about their tenants.
This is an excellent business opportunity for investors, renters looking for a credit advance, and landlords who want to avoid the hassle of tenant verification.
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