Obligo Raises $35 Million to Grow Its Flexible Security Deposit Solutions
Obligo has raised $35 million in new funding to accelerate the growth of its flexible security deposit solutions for the residential rental market and to launch additional products.
The company has experienced rapid growth and is moving closer to profitability, according to a Monday (Oct. 21) press release.
“With these additional resources and our recently announced property management software partnerships, we are uniquely positioned to become the top deposit solution for millions of U.S. homes,” Roey Dor, CEO and co-founder of Obligo, said in the release.
Obligo provides an alternative to security deposits by using bank-issued letters of credit from Wells Fargo and using open banking and artificial intelligence (AI) to determine renters’ eligibility to rent without a deposit, according to the release.
The company recently formed partnerships with property management software companies AppFolio, Buildium and Yardi, the release said.
Obligo’s latest funding round was co-led by 83North and True Global Ventures, and True Global Ventures Partner Lilia Shirman will join the firm’s board of directors, per the release.
“Obligo is a game-changer for leveraging machine learning and AI in real estate,” Shirman said in the release. “The company’s growth and strategic channel partnerships are evidence of the tremendous value they deliver to renters and property managers alike.”
Security deposits are often a “pain point” for both tenants and property managers, and Obligo offers a way to change how they are done, Omri Dor, chief operating officer and co-founder of Obligo, told PYMNTS CEO Karen Webster in an interview posted in June 2018.
“The technology is there,” Dor said. There’s a better way to do this.”
Obligo partnered with Wells Fargo in June 2022, saying landlords and property managers using Obligo would get the added protection of Wells Fargo letters of credit.
In January, the company teamed up with BNY Mellon as part of the global investment company’s BNY Ascent Program, which aims to identify and collaborate with exceptional technology companies offering innovative solutions for the financial industry.
During a proof-of-concept phase, Obligo and BNY Mellon successfully validated Obligo’s ability to integrate into core banking services — an ability that will allow Obligo to provide its suite of security deposit solutions directly from its banking portal.
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