Lavanda raises $7.25m to accelerate global growth and make renting more flexible
Lavanda, the leading UK proptech company whose “flexible rental” platform optimises occupancy and revenue for residential apartment blocks, today announces fresh growth funding of $7.25m. The investment round was led by leading European proptech and fintech venture capital firm Finch Capital, with participation from US-based Starwood Capital, a global leader in real estate investment, via European venture partner Concrete VC.
Aman Ghei, partner at Finch Capital, will join the company’s board where he will sit alongside fellow non-executive directors Justin Meissel, Chief Investment Officer of Henley Ventures, and Harry Hill, founder of Rightmove.
Founded in 2015, Lavanda’s award-winning 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 Lavanda platform leverages technology and data to identify and solve structural inefficiencies within each building, optimising and automating the following key areas:
building configuration
revenue management
distribution and marketing of accommodation inventory
attracting and retaining renters with improved flexibility and convenience
the design and delivery of highly customised, digital-first hospitality experiences
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 leading institutional players Greystar, Blackstone, Hines, Nuveen, and Aldar alongside many others.
Aman Ghei, partner at Finch Capital, comments: “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. As a consequence, traditional residential operators are now able to design and build sustainable, next-generation hospitality brands that are better able to capitalise on emerging market trends, generating huge incremental value for real estate funds and portfolios.”
Ghei continues: “Lavanda’s unique technology, and the solutions it powers for multifamily and student accommodation landlords, are testament to the team’s very deep understanding of the needs of the urban accommodation industry. Despite the obvious headwinds of the last two years, this knowledge and insight has enabled the company to grow an impressive 5x. Furthermore the pandemic has been a catalyst for real estate operators around the world to accelerate their digital transformation, which in turn has enabled Lavanda to build a global pipeline of more than one million apartments. This new investment grants the team additional firepower to accelerate product development and double down on the very exciting growth they’ve already seen in USA, Europe, Middle East and Australia.”
Frederik Lerche-Lerchenborg, CEO of Lavanda comments: “This 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 out our team with new hires across Product. Sales, Customer Success and Marketing. We’re absolutely thrilled to partner with Finch Capital and Starwood in this next phase, and look forward to working with them to execute on the huge potential in the business. Watch this space.”
