Sydney-based proptech startup, Downsizer, has secured A$3.75 million in seed capital.
The round was led by Correlation Australia Holdings (CAH), supported by existing shareholders, including family offices and high-net-worth individuals.
It brings the total raised to date to $6.1 million.
Downsizer is an award-winning startup that provides digital solutions for the finance, property, 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 speed up the growth of the company’s SaaS platform, which operates at the intersection of fintech, proptech, and insurtech.
Its Deposit Power Downsizer Bond lets people to use the equity in their home to back a deposit bond 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 assessment. They can secure a new home without selling their current one, raiding their savings, or superannuation.
The bond is also available to investors, including Self-Managed Superannuation Funds (SMSFs).
The application process is simple, online, and automated, with the technology underpinning the platform evaluate lending risks such as the value of your home and age group.
Downsizer cofounder and managing director Mark Macduffie said a big attraction for downsizers is reducing home maintenance and chores, upsizing luxury and convenience, and releasing equity to top up retirement income, but, at the same time, funding a cash deposit is a big barrier.
“Our mission is to help downsizers achieve their desired home transition, so they can stop worrying and start living! We’re thrilled to welcome Correlation and Lombard as investors and business partners. Culturally and commercially it’s a great fit,” he said.
The proptech’s technology is helping property developers, real estate agents, financial advisors, mortgage brokers, lenders, insurance brokers, and underwriters to engage with Baby Boomers and Gen Xers aged 50+ years.
The platform provides digital content and market insights and also has a national property marketplace where developers can list off-the-plan properties and access a real-time sales dashboard.