Keyzy raises £3m to unlock home ownership for key workers and new buyers

Keyzy, a real estate fintech company offering a buy-to-let solution to aspiring homeowners, has raised £3m in a seed funding round. The proceeds will accelerate home buying and technology platform development, enabling more key workers and young professionals to join the career ladder for the first time.

Axeleo Capital and Outward VC jointly led the funding round. Seed X also participated in a capital raise along with existing investors Global Founders Capital and ActivumSG Ventures.

Jeremy Matallah, co-founder of Keyzy, said: “We are thrilled that Axeleo Capital, Outward VC and Seed X are joining existing investors in supporting our solution, which removes a major barrier preventing key workers and young professionals from owning their own home.”

Property prices in the UK have risen three times faster than income over the past nine years, making it difficult to set aside the 10-20% deposit typically required by mortgage lenders to finance a home purchase. As a result, the average age of those who buy for the first time has risen. Keyzy was founded in late 2021 by Jeremy Matallah and Simon Groll to open up home ownership for those who don’t have enough savings to access mortgage finance, offering a unique financial model that shields clients from rising rents and real estate prices.

Keyzy gives successful candidates a budget to find a home that fits their needs. He purchases the house chosen by the buyer and leases it to him at a fixed rent for a period of three to seven years. Keyzy clients can build a credit history to facilitate a future mortgage application, while up to 25% of their rent is converted to a lower fixed buyout price. Clients are entitled to purchase the home at the original total price less accumulated recalculated rent.

Simon Groll, co-founder of Keyzy, “This round of funding allows us to accelerate home purchases and meet growing demand from the 1,000 applicants and over 3,000 people who signed up on our pre-launch waiting list. This is an exciting moment in our quest to grow the platform, especially with the turmoil in the mortgage market and the end of the Assisted Buying program.

Keyzy uses Open Banking, credit and other customer data to reduce the application process to less than 10 minutes and speed up budget approvals and home purchases. He manages the deal himself and has purchased homes in Greater London, Liverpool, South East and South West England to date. Most of his rent-paying clients work in key services such as education, emergency services and the National Health Service.

Matthias Flattin, partner at Axeleo Capital, said: “Keyzy is using data to make a strong social impact on the UK housing market. Rent-to-own is a solution to avoid rising rental prices by owning a home, while also saving cash to invest in your own home. Demand is very strong in the UK and there are similar opportunities in the rest of Europe.”

Andi Kazerunyan, Investment Manager at Outward VC, said: “We strongly believe that private sector living patterns must move beyond the binary nature of direct homeownership or the increasingly competitive and costly private rental sector in order to meet the needs of society. Keyzy’s customer-centric solution acts as a much-needed bridge between rental and ownership, providing rental flexibility along with the stability, transparency, and potential future benefits that come with owning a home. We are already seeing how this is changing the lives of Keyzy customers across the UK and are therefore thrilled to support Jeremy, Simon and the rest of their exceptional team to continue their mission and make the dream of owning their own home a reality again. ”