SA InsureTech Start-Up LeaseSurance Secures Seed Funding To Drive Growth And Innovation
SA InsureTech Start-Up LeaseSurance Secures Seed Funding To Drive Growth And Innovation. LeaseSurance, a pioneering InsureTech platform underwritten by Bryte, has successfully raised R3million in a seed financing round led by Fedgroup Private Capital. The funding will be instrumental in advancing LeaseSurance’s mission of enhancing the real estate ecosystem through its innovative lease insurance offering by expanding its team, and further developing cutting-edge technology solutions for the industry.
LeaseSurance offers lease insurance for some of South Africa’s leading residential operators and asset owners. The product has benefits for tenants and landlords alike, especially in a country characterised by low GDP growth, high unemployment, high inflation and interest rates – all of which place pressure on tenants.
Traditionally, landlords have relied on cash deposits for protection against tenants defaulting as a result of these pressures. “Unfortunately, though, the usefulness of a cash deposit has limitations. Cash deposits present administrative challenges and limited protection against rent loss and damages, creating financial constraints for both tenants and landlords,” comments Paul Schaefer, CEO of LeaseSurance.
LeaseSurance’s B2B, tech-driven lease insurance addresses these concerns for landlords by reducing the administrative burden, replacing cash deposits with affordable monthly fees, and lowering bad debts. As a result, landlords gain up to five times more protection, resulting in an improved Net Operating Income (NOI) for their properties. The solution also makes it possible for landlords to remove current barrier concessions such as discounts and lower deposits, saving millions on the bottom line. Fedgroup Private Capital’s investment in the company sets the stage for the company to build on this offering. “This is an exciting development for us. It comes at a time when we are ready to take our product to the next level,” Schaefer says.
Sheldon Friedericksen, General Manager of Fedgroup Private Capital, says that Fedgroup was impressed by LeaseSurance’s commitment to innovation. “LeaseSurance has created the foundation for an end-to-end enterprise InsureTech property platform which resonates with Fedgroup’s 30+ years’ experience in the property industry. Our investment will be used to continue to build the solid foundation required to grow this truly exciting and much-needed solution in the property sector. With this investment, LeaseSurance now forms part of the broader property ecosystem within Fedgroup. Our curated network of providers allows us to unlock value in assets and support property owners and their tenants, while reducing waste through the provision of utility management services that incorporate smart technologies around water and energy.”
Wim Morland of Bryte Insurance Company Limited, which underwrites LeaseSurance’s business, echoes Friedericksen’s excitement. He says that the company is proud to be associated with an organisation which is at the forefront of innovative property and insurance solutions, and continues to look for ways to advance further. “This investment equips LeaseSurance to enhance its product offering, creating even more advantages for tenants and landlords alike,” he comments.
