South African prop-tech startup, HouseME secures funding to grow its platform.

South African prop-tech startup, HouseME secures funding to grow its platform.

South African prop-tech startup HouseME has raised fresh funds from new and existing investors.

However, the exact amount of the funding was not disclosed and makes it the forth time the company has raised funding.

The funding will help HouseME grow its position in the long-term digital rental and letting market.

HouseME is a digital platform that links prospective tenants to landlords with full automation of the letting agency process as well as a fair and transparent rental pricing.

Chief executive officer (CEO) of HouseME, Ben Shaw said the latest injection of capital meant HouseME was well positioned to capitalise on the surge of interest in online platforms in the long-term letting sector which had been lagging.

“This latest round of investment coincides with our celebration of three years in operation. We’re gearing up further after having recently completed work on our improved user experience,” Shaw further said.

“The number of units advertised on our site has increased materially since the beginning of the year, driven by larger property portfolios – many of whom are now moving digital, seeking the cost efficiencies of a long-term letting platform. As a result of the new normal, we’re also seeing increased interest in our risk mitigation products such as the rental guarantee,” he said.

The prop tech which began operations in 2016 now has a user base of over 150,000, depicting a substantial year-on-year increase.

A statement by HouseME reported, “With rental increases dipping to just 1.6% for the second quarter – half the growth rate of the previous quarter, and the lowest quarterly growth rate in its history – the index cites affordability as the major driving force behind the muted growth. “

Not long ago, HouseME also conducted a large-scale survey that shows that at least 28% of tenants had experienced a decrease in income thanks to the impacts of lockdown and Covid-19.