Fintech company Obligo raises $15.5 million in Series A
NY-based Obligo announced a $15.5 million Series A funding round from investors including 83North, 10D, Entrée Capital, Viola Credit, and other real estate investors. The funding will enable Obligo to roll out its deposit-free technology to millions of homes across the US.
Obligo enables tenants to rent an apartment without a security deposit. Instead of paying a deposit or buying deposit insurance, renters submit a payment method for pre-authorization, similar to a hotel check-in process. If the landlord submits a charge at the end of the lease, Obligo pays out first, while the renter can repay either in full or in installments. Before applicants are approved to join Obligo, they must connect their bank account to the platform using Open Banking technology and pass a financial screening powered by Obligo’s AI-based underwriting engine.
“With the economic impact of the COVID-19 crisis, deposit-free renting has never been more relevant. We can help families avoid the burden of paying a security deposit at move-in, or return their deposits in the middle of their lease. Landlords that utilize our technology enjoy reduced operational costs and are able to promote their properties as deposit-free communities, providing a powerful incentive that drives both move-ins and renewals.” – CEO of Obligo Roey Dor.
“Deposit-free renting has received unprecedented validation in the last year with regulatory tailwinds and increased demand from landlords seeking to gain a competitive edge. Within the deposit-free space, Obligo has a clear technology lead with powerful underwriting, collection and integration capabilities. We’re thrilled to join Obligo’s visionary team on this exciting journey.” – Co-founder and Managing Partner of 10D Yahal Zilka.
Founded in 2017 by brothers Roey Dor and Omri Dor, Obligo has established partnerships with property managers such as Beam Living (StuyTown), Aimco, Common Living, Olshan Properties, AJ Clarke, Time Equities, Hunter Lafayette, Landmark Communities and others.
“After extensive evaluation, Common decided to roll out Obligo across our national portfolio earlier this year. During such a turbulent time, allowing Common renters to have more cash on hand through Obligo has been a game-changer. Their team’s mission is fully aligned with ours: to create a stress-free rental experience, while boosting bottom lines for our real estate partners. Plus, Obligo is embedded right into our own branded software experience, which makes both our residents and leasing team happy.” – Founder and CEO of Common Brad Hargreaves.