Dwelly has secured a $95m (USD) equity investment and agreed a proposed $75m (USD) expansion of its debt facility to accelerate its acquisition of independent letting agencies.
The combined $170m (USD) financing package (approximately £125m) will support further UK acquisitions, development of Dwelly’s AI operating platform and its planned entry into selected European markets.
EQT Growth and General Catalyst co-led the equity round, with further backing from s16vc, Begin Capital, DVC and several technology executives.
Trinity Capital is providing the additional debt capacity, although the $75m expansion remains subject to the finalisation of its terms.
15,000-PROPERTY PORTFOLIO
Dwelly now manages approximately 15,000 UK properties generating an annual rent roll of around £350m.
The company says this places it among the country’s 10 largest lettings businesses by portfolio size, although that ranking is based on its own assessment.
Rather than supplying software to agencies, Dwelly acquires and operates independent firms. Local brands, employees and client relationships are retained while operations are transferred onto its shared technology platform.
The model places Dwelly in direct competition for agency acquisition opportunities as regulatory costs, succession planning and investment requirements encourage some independent owners to consider a sale.
AI OPERATIONS
Dwelly uses AI agents to support tenant enquiries, onboarding, contracts, rent collection, maintenance, compliance and communication between landlords, tenants, contractors and property managers.
Data and operating knowledge obtained with each acquisition – including communication histories, property records and landlord preferences – are incorporated into the wider platform.
Operational improvements developed within one agency can then be deployed across the network, while staff concentrate on advice, complex decisions and customer relationships.
Ilya Drozdov, Co-Founder and Chief Executive Officer of Dwelly, says: “Dwelly is AI-first by default: we assume AI should be able to do every operational task.
“AI takes over the transactional layer, while our people become world-class advisers to landlords and tenants.”
FINANCIAL PRODUCTS
Part of the investment will also fund the development of new financial products for landlords and tenants, although further details have not yet been disclosed.
Nils Petter Nygaard, Managing Director at EQT Growth, says Dwelly represents a different model from simply consolidating agencies to generate financial returns.
He adds: “Dwelly is reinventing service delivery by applying AI to every part of the operating model, creating a better experience for customers while redefining how residential lettings are delivered.”
Zeynep Yavuz-Willson, Partner at General Catalyst, will join Dwelly’s board following the investment.
Main picture: The Dwelly team: (Left to right) Sam Humphreys; Dmitry Khanukov; Ilya Drozdov and Dan Lifshits.
