Obligo Raises $15.5M for Embedded Rental Finance
Obligo, a digital leasing and payments platform, has raised $15.5 million in a Series A funding round. The company provides solutions for rental payments and security deposit alternatives, highlighting continued venture capital interest in embedded finance platforms that integrate payments and credit into specific industry workflows.
- The Series A round was led by Israeli venture capital firm 10D, with participation from existing seed investors 83North and Entrée Capital, as well as Viola Credit. - Founded in 2017 by brothers Roey and Omri Dor, Obligo's model is an alternative to deposit insurance; it uses a pre-authorization process similar to a hotel check-in. If a landlord files a claim, Obligo pays them and then collects the amount from the renter in installments. - To qualify renters, Obligo employs an AI-based underwriting engine and leverages Open Banking technology to have applicants connect their bank accounts for financial screening. - The company was the first security deposit alternative to utilize bank-issued Letters of Credit, a program supported by Wells Fargo. - Following the Series A, Obligo raised an additional $35 million, bringing its total funding to over $90 million by late 2024 to fuel product innovation and partnerships. - Obligo's API-first distribution strategy includes partnerships with major property management software platforms like Yardi, AppFolio, and Buildium, embedding its service directly into their workflows. - The company generates revenue by charging a fee for its service, which can be paid by either the renter or the landlord, who may offer the deposit-free option as a marketing incentive.
