Chexy raises $3 million

Chexy, a Canadian startup allowing renters to pay their rent online while earning rewards and building credit, had raised ~$3 million in a seed round led by Venrex, with participation from Crossbeam Ventures, Groundbreak Ventures, Antler Global, and strategic angels in real estate, fintech, and banking.

Launched in early 2023, Chexy claims to be the first Canadian platform to enable over 15 million renters across the country to use their preferred credit card for rent payments. Unlike the Bilt/Wells Fargo model, Chexy users paying rent with their credit cards will incur a transaction fee depending on the card they use, but the startup is offering points and cashback. Chexy also offers users a way to lower the transaction fee percentage by bundling others products and services such as renters insurance and internet.

The startup, which has thousands of active users, also allows renters to self-report payments to Equifax so they can build their credit.

The funding round will help Chexy build infrastructure for tenants to pay through Chexy, no matter their landlord’s preferred payment method, and move beyond rental payments into other household services, including mortgages.

“As a newcomer to Canada myself who has gone through the challenges of navigating our credit scoring system, I am dedicated to ensuring that anyone who wishes to have their rent payments reflected on their credit report can do so — at no extra cost to our users. Not having rent payments on the credit report is causing a significant information asymmetry between tenants and landlords, making the next apartment search hard in an incredibly competitive rental market. Not to mention, homeownership in Canada is already a pipe dream for many, so this is Chexy’s way of helping people move closer to achieving their dreams.” – Liza Akhvledziani, CEO and Co-Founder of Chexy.

“It is truly a win-win-win proposition with no behavior change needed, best represented by their organic, rapid monthly user growth since launch.  If you are a renter in Canada, there is no reason why you wouldn’t use Chexy and share it with your friends. Liza and team are at the forefront of building the infrastructure for consumer finance in Canada and we are thrilled to be a part of the journey.” – Ian Goldberg, Principle at Venrex.

Chexy recently announced Chexy Home Services, allowing tenants to purchase tenant insurance coverage, WiFi, phone services, and more—all at great rates under the Chexy home system with more services to come, making the Canadian rental experience more convenient and affordable.

Bottom Line: AmTrust stands to win.