A London startup aiming to provide renters with affordable credit options to finance deposits has shut down.
Fronted, founded in 2019 and which featured at No.40 on our PropTech 50 ranking last year, has been hit by the rises in interest rates and spiralling property prices.
The open banking finance solution, which launched on Yobota鈥檚 core banking platform in February 2021, allowed customers to pay back deposits on a monthly basis.
鈥淎fter an incredible journey together, we鈥檙e saying farewell to Fronted,鈥� a statement credited to CEO Jamie Campbell says on the company鈥檚 website.
鈥淭hank you for being a part of our journey, your support made it all possible.鈥�
Campbell is a former employee at Bud Financial, while his co-founders Simon Vans-Colina and Anthony Mann formerly worked at Monzo and Apple respectively.
The firm raised over 拢20 million of debt and equity funding led by Fasanara Capital two years ago. Backers include Passion Capital, TrueSight Ventures and The Future Fund.
鈥淲e knew that we had good results when customers were paying around about 拢50 for it, but the shift in the market meant we couldn鈥檛 offer it for less than 拢100, and the price elasticity for our customers just wasn鈥檛 there,鈥� Campbell told Tech.eu.