An app that streamlines transactions between property managers and tenants has successfully secured additional funding for its series A round due to a surge in traffic caused by the COVID-19 pandemic.
Sorted, founded by Andrew Duncan, who previously sold his start-up to Computershare for $54.3 million in 2011, initially aimed to raise $4 million. However, investors, led by venture capitalists Rampersand, were convinced to contribute $5.6 million, finalizing the round last month.
“The property management industry was already facing challenges in terms of customer experience prior to this crisis,” said Mr. Duncan, who has invested an additional $3 million of his own money into developing Sorted since leaving Computershare in 2015. He retains approximately two-thirds of the shares in Sorted following the fundraising.
“Now, with tenants seeking inquiries and requesting payment extensions from all directions, property managers are realizing the urgent need to digitize and streamline numerous processes. This presents us with an opportunity to demonstrate the power of an automated system.”
Sorted enables property managers to handle rental property applications and screenings, as well as obtain contact-free digital signatures from successful applicants. The platform promptly arranges electricity and broadband services for tenants, either through its own offerings or by utilizing a marketplace of third-party providers. Payments for these services, along with rent payments, are processed through the platform, which also handles maintenance requests and procedures related to property vacation or lease renewal.
Given the financial strain faced by many tenants as a result of the pandemic-induced economic crisis, Mr. Duncan stated that Sorted has devised plans to accommodate smaller short-term payments and has temporarily removed broadband data caps.
At present, only around 4,000 tenants regularly utilize Sorted, following a successful trial conducted with Canberra property managers Independent Property Group in late 2022. However, more property management groups are joining the platform, benefiting from the enterprise sales boost prompted by the pandemic.
“I’ve noticed that people are readily jumping on Zoom calls and making swift decisions, especially regarding solutions that can enhance their efficiency,” said Mr. Duncan. “Previously, it would take weeks of waiting for the next available meeting slot while I was flying to Melbourne. Now, all of that has been eliminated.”
The series A funding will primarily be allocated to marketing efforts, ensuring that more of Sorted’s clients, who manage a total of 28,000 tenancies, come onboard. According to Mr. Duncan, all existing clients were successfully integrated into Sorted within four weeks, with no need for changes to their core systems.
Additionally, the start-up is actively working on expanding its services for tenants, with plans to offer insurances such as home contents coverage in the near future.
Following the fundraising round, Sorted’s board now includes Rampersand partner Paul Napthali and former Unlocked CEO Jane Martino.
