Sun. Oct 1st, 2023

Seed Funding Of $2.6M Poured Into Lease-To-Personal App Gravy

Gravy has issued over $4 million value of rewards and its members have set greater than $100 million in targets for his or her first dwelling purchases.

Newly out of its beta mode, rent-to-own cell app Gravy has secured a seed spherical of financing within the quantity of $2.6 million.

Gravy didn’t disclose who led the funding, saying solely particular person “actual property and know-how buyers” contributed.

Reviewed by Inman in March, 2022 earlier than its official launch, Gravy exists in a quickly-growing sector of trade suppliers that marries monetary companies with dwelling shopping for help and sources.

Amongst different advantages, renters use the app to build up Gravy Rewards, a common time period the corporate makes use of to embody quite a few totally different types of monetary advantages it gives.

Funds of as much as 5 % of every on-time hire fee are earned month-to-month, and extra when renters use brokers who’re members of Gravy’s nationwide community to purchase a house. It additionally deposits $250 into customers’ accounts upon setup, and connects aspiring consumers with accredited accomplice lenders.

The FDIC-insured down fee financial savings app additionally makes use of rewards to incentivize use of its homebuyer schooling modules, to encourage financial savings milestones and for person referrals. Family and friends can straight contribute to a person’s Gravy account, too.

In line with the funding press launch, Gravy has issued over $4 million value of rewards and its members have set greater than $100 million in targets for his or her first dwelling purchases.

“Gravy’s partnership with the main brokerage group within the nation, Realogy, matches members with brokers from among the most acknowledged names in actual property, akin to Coldwell Banker and Century 21, in addition to accredited nationwide mortgage lenders,” the corporate wrote in an announcement.

Baselane, a property administration app for single-family landlords, is one other instance of a know-how firm mixing its productiveness instruments with monetary companies. Divvy, valued at greater than $2 billion, additionally helps renters save for dwelling possession.

The rental market is seeing a substantial amount of consideration from buyers and know-how entrepreneurs alike, a results of the more and more difficult home-buying surroundings. Upon rolling out leases on its nationwide search expertise, Redfin estimated that about one in 5 of its 47 million month-to-month website customers are additionally occupied with leases.

“Homeownership is the first method People construct wealth, however between surging rents and residential costs, it’s by no means been more durable to purchase your first home,” mentioned co-founder and CEO Jeff Dinter. “We began Gravy to assist renters save up, put together, and finally purchase their first dwelling with confidence.”

Gravy was based by Dinter, Will Dunn (CGO) and Jimmy Lien (CTO), all alumni of rental property administration software program firm Buildium, which was acquired by RealPage for $580 million in 2019.


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