Keyzy, a UK-based rent-to-own startup catering to key workers, has successfully secured £3 million in a seed funding round.
Over the past nine years, UK property prices have surged three times faster than incomes, creating significant challenges for individuals attempting to save the typical 10-20% deposit required by mortgage lenders. Keyzy addresses this issue by providing successful applicants with a budget to find a suitable home. The company then purchases the selected property and leases it to the customer at a fixed rent for a period of three to seven years.
During this lease period, customers can build a credit history to support future mortgage applications, while up to 25% of their rent can be applied to lower the buy-back price of the property. Customers have the opportunity to buy the home at the original cost minus the aggregated converted rent.
Co-founder Simon Groll stated, “This funding round allows us to accelerate home purchases and meet the surging demand from over 1,000 applicants, including more than 3,000 who signed up for our pre-launch waitlist. It’s a pivotal moment in our mission to expand the platform, especially considering the current turmoil in the mortgage market and the conclusion of the Help to Buy scheme.”
Keyzy utilizes open banking, credit, and customer data to streamline the application process to under 10 minutes, expediting budget and home purchase approvals. The company manages the entire transaction process and has acquired properties in Greater London, Liverpool, and various regions in Southeast and Southwest England. Its primary customers are employed in essential services, including education, emergency services, and the National Health Service.
The funding round was co-led by Axeleo Capital and Outward VC, with participation from Seed X, alongside existing investors Global Founders Capital and ActivumSG Ventures. The firm intends to use the proceeds to accelerate home purchases and enhance its technology platform, facilitating greater access for key workers and young professionals to enter the property market for the first time.