Sydney-based proptech startup Downsizer has secured $3.75 million in seed capital.
The round was led by Correlation Australia Holdings (CAH), backed by existing shareholders including family offices and high net worth individuals.
This brings the total raised to date to $6.1 million.
Downsizer is an award-winning startup that provides digital solutions for the finance, real estate and insurance industries to help those looking to transition to a new home and improve their lifestyle and finances.
The fresh cash will be used to accelerate the growth of the company’s SaaS platform, which operates at the intersection of fintech, proptech and insurtech.
The Deposit Power Downsizer Bond allows people to use the equity in their home to back a deposit guarantee and secure a new property without putting down a cash deposit.
The Downsizer bond simplifies the home transition process for older owner-occupiers who may not pass a traditional credit rating. They can secure a new home without selling their current one, losing their savings or without a pension.
The bond is also available to investors, including self-managed superannuation funds (SMSFs).
The application process is simple, online and automated, with the technology behind the platform assessing loan risks such as home value and age group.
Downsizer co-founder and managing director Mark Macduffie said a big draw for downsizers is reducing maintenance and housework, increasing luxury and comfort and freeing up equity to top up retirement income, but at the same time funding a deposit cash is a big barrier.
“Our mission is to help downsizers make their desired home transition so they can stop worrying and start living! We are pleased to welcome Correlation and Lombard as investors and business partners. Culturally and commercially, it’s a great fit,” he said.
Proptech helps real estate developers, real estate agents, financial advisors, mortgage brokers, lenders, insurance brokers and underwriters engage with Baby Boomers and Gen Xers 50+.
The platform offers digital content and market information and also has a national real estate marketplace where developers can list off-plan properties and access a real-time sales dashboard.