Spleet raised $625,000 in pre-seed funding to help build rent financing and tenant verification solutions.
The oversubscribed pre-seed round led by MetaProp VC with participation from Future Africa, FEDHA Capital, VFD Group, Moonshot VC, HoaQ, CEO of Squarefoot, Jonathan Wassersturm, CEO of Flutterwave and Gbenga ‘GB’ Agboola.
“Spleet has distinguished itself as a best in class product within the nascent and exploding proptech sector in Nigeria. It remains extraordinarily difficult to rent apartments efficiently and we believe Spleet will create a massive business by removing this friction.” Zachary Evans, co-founder and General Partner at MetaProp stated.
Tola Adesanmi was the founder of this company. Spleet’s mission of building a future where renting a home is much easier, has made significant progress with the creation of a financial services solution enabling landlords to verify and vet tenants as well as automate rent collections while individuals looking for comfortable living spaces with flexible payment options can do so with little to no hassle.
The Nigerian startup proptech will use this investment to build Rent Now Pay Later, its latest rent financing product. It also plans to create other products that allow seamless residential rental processes. Beta testing is currently underway for the product.
According to Spleet, “this product will give tenants access to affordable loans to pay rent. With the soaring cost of buying a home, more and more people are opting for rentals as such there has been an increased demand for living spaces; further, the slow wage growth has contributed to a housing crisis in Nigeria. Landlords are requiring tenants to pay 1-2 years upfront for their rent.”
This is a burden on tenants as many tenants don’t have the income to make the initial payment required by Landlords. Rent financing is an important option for tenants. It allows prospective Tenants to break down their upfront rent into monthly payments that allow them to track their income.
In Nigeria, 85 percent of Nigeria’s urban population live in rented accommodation in 2010, devoting more than 40 percent of their income to rent. The urban population of Nigeria constituted 48 percent of the country’s population in 2009.
This shows that 73.92million Nigerians of the estimated population of154 million live in urban centres. This figure represents 85 percent of the country’s 62.93million inhabitants who live in rented homes. According to a report, renting an apartment in Nigeria is more costly than in any other African country, except Seychelles. Numbeo, a global data service provider.
According to Spleet’s CEO, Tola Adesanmi, “After launching a marketplace in 2019, we realized that the issues in our rental market were beyond what our marketplace could solve. Tenants are most concerned about affordability. Most tenants earn income monthly and can therefore not afford the 1-2 years burden of paying their rent in advance.”
Spleet will scale up its tenant verification and rent collection product to vet tenants and automate collecting rent payments, which has been a major pain point for landlords. These products will protect Landlords’ rental investments by running background checks on potential tenants and selecting only reliable, verifiable applicants. Automated rent collection will help Landlords reduce the risk for loss of rental income as well as late payments.
Adesanmi added that “landlords find it difficult to verify tenants and are dependent on tenant decisions to receive regular rent payment, resulting in high default and an inefficient rent collection system. Spleet reduces landlord risks by verifying tenants through proprietary and third-party APIs and automating the collection rent.
“We have verified thousands of tenants for our individual and corporate landlords enabling these landlords to automate the collection of rent, manage tenants and maintenance requests for their homes,” he said.