NEW YORK, Nov. 18, 2020 /PRNewswire/ -- Fintech company Obligo today announced a $15.5 million Series A funding round from investors including 83North, 10D, Entrée Capital, Viola Credit, and other strategic real estate investors. The funding will enable Obligo to roll out its deposit-free technology to millions of homes across the U.S.
Obligo enables tenants to rent an apartment without a security deposit. Instead of paying a deposit or buying deposit insurance, renters submit a payment method for pre-authorization, similar to a hotel check-in process. If the landlord submits a charge at the end of the lease, Obligo pays out first, while the renter can repay either in full or in installments. Before applicants are approved to join Obligo, they must connect their bank account to the platform using Open Banking technology and pass a financial screening powered by Obligo's AI-based underwriting engine.
"With the economic impact of the COVID-19 crisis, deposit-free renting has never been more relevant," said Roey Dor, CEO of Obligo. "We can help families avoid the burden of paying a security deposit at move-in, or return their deposits in the middle of their lease. Landlords that utilize our technology enjoy reduced operational costs and are able to promote their properties as deposit-free communities, providing a powerful incentive that drives both move-ins and renewals."
"Deposit-free renting has received unprecedented validation in the last year with regulatory tailwinds and increased demand from landlords seeking to gain a competitive edge," said Yahal Zilka, co-founder and Managing Partner of 10D. "Within the deposit-free space, Obligo has a clear technology lead with powerful underwriting, collection and integration capabilities. We're thrilled to join Obligo's visionary team on this exciting journey."
Founded in 2018 by brothers Roey Dor and Omri Dor, Obligo has established partnerships with leading property managers such as Beam Living (StuyTown), Aimco, Common Living, Olshan Properties, AJ Clarke, Time Equities, Hunter Lafayette, Landmark Communities and others.
"After extensive evaluation, Common decided to roll out Obligo across our national portfolio earlier this year. During such a turbulent time, allowing Common renters to have more cash on hand through Obligo has been a game-changer," said Brad Hargreaves, founder and CEO of Common. "Their team's mission is fully aligned with ours: to create a stress-free rental experience, while boosting bottom lines for our real estate partners. Plus, Obligo is embedded right into our own branded software experience, which makes both our residents and leasing team happy."
Obligo rids both landlords and renters of the burden of security deposits, lowering costs, increasing cash flow and simplifying the move-in process. Owners and managers use Obligo to streamline their operations, comply with changing regulations, make their listings more appealing to renters, and incentivize renewals. As the only non-insurance deposit alternative, Obligo's credit-based solution keeps landlords secure and renters accountable by combining Open Banking technology with AI-based underwriting and collection capabilities. Since launching its fintech solution in 2018, Obligo has established partnerships with leading property managers across the US.