SA insurtech startup LeaseSurance raised $161k Seed funding to spur growth and innovation

LeaseSurance, a South African startup in the insurance technology space, has raised ZAR3 million ($161,000) in seed funding to grow its team and continue creating innovative technology solutions for the real estate sector.

By substituting lease insurance for security deposits, LeaseSurance makes the most of the assets in rental real estate. The platform gives landlords and property managers a complete B2B solution, giving them access to a data-driven risk engine and data platform to increase operating income and optimize portfolio performance.

For protection against tenants defaulting due to these pressures, landlords have traditionally relied on cash deposits.

“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,” said Paul Schaefer, CEO of LeaseSurance.

These issues are addressed for landlords by LeaseSurance’s B2B, tech-driven lease insurance by lessening the administrative burden, swapping cash deposits for reasonable monthly fees, and reducing bad debts. As a result, landlords receive up to five times more protection, which boosts their properties’ NOI (Net Operating Income). Additionally, the solution enables landlords to eliminate current fee concessions like discounts and lower deposits, saving millions overall.

Fedgroup Private Capital led the ZAR3 million (US $161,000) seed financing round, which paves the way for the business to expand its 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 said.

Fedgroup Private Capital’s general manager, Sheldon Friedericksen, stated that his company was impressed by LeaseSurance’s dedication to innovation.

“LeaseSurance has created the foundation for an end-to-end enterprise insurtech 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,” he said.

“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.”