UK PropTech Startup Dwelly Raises $93M to Modernize Real Estate Agencies
A London-based startup founded by former Uber and Gett executives, Dwelly, has secured £69 million ($93 million) in funding to expand its acquisition of independent real estate agencies across the U.K. The company plans to modernize these agencies using AI and digital technology. The funding round includes £32 million in equity led by General Catalyst. alongside Begin Capital and S16VC, and a £37 million debt facility provided by Nasdaq-listed Trinity Capital.
Accelerating Growth Through Acquisitions
Dwelly has already acquired ten agencies and intends to use the latest funding to accelerate its roll-up strategy. The U.K. lettings market is highly fragmented. The comprising roughly 20,000 firms managing 5.5 million rental properties, generating over £100 billion in annual rent and £10 billion in agency commissions. Despite the enormous market size, the top 100 firms hold less than 30% of the sector, with many agencies still operating on outdated systems like phone calls, manual paperwork, and ad hoc processes.
Rapid Expansion and Ambitious Targets
Co-founder and CEO Ilia Drozdov said Dwelly now manages over 10,000 properties. The ranking it among the top 15 letting agencies in the U.K. within just two years. With £200 million in gross rent under management, the startup aims to reach 50,000 properties by the end of the year. The positioning itself as a top-five agency nationally. Currently employing nearly 300 people. Dwelly plans to expand its workforce to over 1,500 by year-end to support its growth.
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AI-Enabled Efficiency and Customer Acquisition
Described as an “AI-enabled roll-up,” Dwelly integrates technology into acquired agencies to automate workflows. The improve efficiency, and enhance customer service. The platform automates tenant communications, background checks, offer management, and maintenance requests. This reduces property letting times from three weeks to under two and cuts maintenance resolution from 50 days to 20, with a target of 10.
Company Strategy Prioritizes Acquiring Agencies Over Software Sales
Co-founder Dan Lifshits highlighted that the company’s strategy focuses on acquiring entire agencies rather than just selling software, as owning the full customer relationship is far more profitable. The local brands and staff are retained. while AI systems streamline administrative work. allowing agents to focus on core activities like property viewings.
Investor Confidence and Future Plans
General Catalyst partner Zeynep Yavuz praised Dwelly for transforming thousands of analog processes into scalable software. It enhancing both tenant and landlord experiences. Looking ahead. Dwelly plans to expand into Western Europe, starting with France, and eventually into the U.S. While maintaining a primary focus on the U.K. market.
