UK prop tech company Lavanda has raised $7.25 million. The investment round was led by European prop tech and fintech venture capital firm Finch Capital, with participation from US-based real estate investor Starwood Capital via European venture partner Concrete VC.
Founded in 2015, the company’s property management software makes it easy for owners and operators of residential apartment buildings to outperform conventional rental yields by tapping into short and medium-term rentals alongside more conventional long-term tenancies.
The fresh capital will help the startup accelerate its product development and double down on the growth it has already seen in the U.S., Europe, Middle East and Australia.
The product focuses on the specific needs of the multifamily, student accommodation and serviced apartment sectors where the company’s rapidly growing global customer base includes institutional players like Greystar, Blackstone, Hines, Nuveen, and Aldar.
Frederik Lerche-Lerchenborg, CEO of Lavanda said: “The new capital injection is an important step towards realising our vision of becoming the de facto technology platform for powering more flexible, accessible and affordable living. It allows us to further strengthen our core product with a raft of unique new features and build our team.”
Aman Ghei, partner at Finch Capital, said: “Rental demand has seen a fundamental shift. As people become increasingly familiar with the ease and experience of booking a home through Airbnb, they come to expect the same when renting their primary residence. To date that’s just not been possible due to archaic leasing structures and a lack of enabling technology. The Lavanda team have cleverly identified this gap and developed a new software layer that makes it easy for institutional landlords to boost yields by renting their inventory by the day, week, month or year in line with their business strategy.”