Rhino and Jetty merge
Rhino and Jetty, which provide an alternative to security deposits, announced their merger.
By joining forces, the companies create a “profitable venture” that partners with 47 of the NMHC’s top 100 property owners, including companies like Greystar, Highmark Residential, UDR Apartments, and Morgan Properties.
The merger will accelerate the company’s ability to grow the security deposit alternative market while expanding its suite of move-in solutions, including cash deposit management, renters insurance, guarantor coverage, and loss of employment insurance.
Georges Clement, currently Rhino’s COO, will lead the combined company as CEO. Ben Lantos, co-founder of Rhino, will serve as a Senior Advisor to the combined company. Michael Rudoy, Jetty’s co-founder and CEO, will join the company’s Board of Directors.
The combined company will bring together their insurance partners including AmTrust Financial and The Fortegra Group, and will add new board members, Barry Karfunkel, co-founder of Adir Ventures and former CEO of National General, and James Garvey, founder and former CEO of Self Financial.
Founded in 2015, Jetty has raised $121.3M across five funding rounds, with the last round being a $23M convertible note in September 2021, backed by CreditEase Fintech Investment Fund, Citi, Flourish Venture, and K5 Global.
A Glassdoor review suggests that by expanding beyond its core competency of security deposit replacements, Jetty spread itself too thin across multiple product lines that were fundamentally different businesses. “They’ve since pulled back to just two products, but they wasted valuable time and resources due to a lack of focus.” The company also struggled with adverse selection in its products and had a poor grasp of insurance unit economics, according to the post.
“Six years ago, renters had no choice but to pay a cash deposit. Rhino and Jetty pioneered this category, creating a new standard for the industry. It’s fitting to bring these companies together as security deposit insurance becomes the norm across American rental housing.” – Alex Fiance, Rhino Chairman and Co-CEO of Kairos.
“This merger combines our technological innovations and product strengths to deliver what our partners have consistently requested: a comprehensive suite of solutions that simplifies the entire rental process for both residents and property managers.” – Michael Rudoy, co-founder of Jetty.
