Rhino, the New York City-based insurtech company that pioneered security deposit insurance, today announced its recent $95 million funding round, led by investment firm Tiger Global Management. Launched in 2017, Rhino tackles the housing affordability crisis in America by replacing cash security deposits with smart, affordable insurance so that 110 million American renters can maintain control of their cash.
The financing comes as Rhino plans an ambitious expansion, building on its growth in recent years. Over the past 18 months, Rhino has tripled in size to 100 employees and expanded from 200,000 homes to more than 1 million homes today—resulting in over $250 million in direct savings for renters. Over the last two-year period, the company has seen a 1,500% growth in Contracted Annual Recurring Revenue (ARR), from $4 million in January 2019 to $60 million in January 2021. Driven by widespread adoption from both landlords and the renters they serve, and the great need for renter support amidst the ongoing COVID-19 pandemic, the company plans to scale its expansion in 2021—targeting over $500 million in direct savings for renters and doubling its headcount to over 200 employees.
“We are excited to support the Rhino team. Security deposit insurance is still in its early days, but we believe it will become an increasingly popular product for renters,” said Scott Shleifer, Partner at Tiger Global Management.
Rhino’s flagship product, security deposit insurance, acts as a direct replacement for a cash security deposit. Instead of a large upfront cash deposit, renters pay Rhino a small monthly fee that can be as little as $1.50 per month, and Rhino insures the property owner for damages that might occur and lost rent. Rhino is set to invest its latest funding round in continuing to help renters achieve financial freedom by increasing its availability through partnerships with property owners, advocating for renter-friendly legislation at the city, state, and federal levels, and bringing new products to market. Rhino’s funding round also includes existing major investors, Kairos and Lakestar VC, as well as Lakehouse VC and additional strategically aligned insurance and real estate investors.
“Putting renters first in our business has given us the opportunity to become renter advocates at a national level,” said Paraag Sarva, CEO at Rhino. “We advocate for renter-friendly legislation like Renter’s Choice because nearly half of Americans are unable to afford a $400 emergency expense and that makes housing affordability one of the most pressing issues in America right now. With $45 billion sitting locked away in escrow accounts, unusable for both renters and property owners alike, we need common-sense legislation that can put that money back into the pockets of people who need it the most–renters.”
“Security deposit insurance has already seen great success and is an industry poised for explosive growth,” added Ankur Jain, Chairman at Rhino. “This funding will allow us to take our product to even more renters, launch new products, and help make housing more affordable, which is especially crucial during the pandemic when this issue is front and center for so many Americans.”
Rhino’s work with a bipartisan coalition of elected officials resulted in the Renter Choice and Flexibility Plan, a legislative initiative that offers city and state governments a path to putting billions of dollars in security deposits back into the economy as quickly as possible. The Plan has led to legislation requiring affordable deposit alternatives in Cincinnati, Atlanta, and temporarily by executive order in New York, New Jersey, and Connecticut, and has garnered support from 14 bipartisan elected officials representing 10 states, including Miami Mayor Francis Suarez and Los Angeles Mayor Eric Garcetti.
Source: PR Newswire
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