Proptech firm Rhino will be buying the technology and assets of Deposify, a cash security deposit management technology platform, to launch an end-to-end deposit management and compliance platform.
The platform, which is planned to launch after the transaction closes this year, will service more than $45 billion in cash deposits and security deposit insurance for 43 million rental homes nationwide, the two firms said this week.
Launched in 2017, the target of the Rhino platform is to replace the renter requirement of paying a large upfront cash security deposit. By paying Rhino a small fee, it insures the property owner for potential damages and lost rent.
Deposify, a portfolio company of Sunriver Ventures, is a cash deposit collection and compliance company for landlords and property managers across the country.
The acquisition is “a direct response to hundreds of conversations with renters frustrated by waiting for deposit refunds and landlords and property managers struggling with time-consuming operations, looking for more cost-effective ways to handle cash,” Paraag Sarva, Rhino CEO, said in a statement.
Sarva added that while cash deposits will continue to be used for some portion of transactions, Rhino is in a “unique position to solve those challenges.”
As part of its mission to increase transparency between renters and landlords, Rhino is also launching Credit+, a free credit reporting service that allows renters to build credit through on-time rent reporting.
The proptech aims to reach more than 45 million unserved or underserved U.S. residents who have little to no credit history with its new credit reporting service. It will be available exclusively to renters through partners that use Rhino’s end-to-end deposit management platform, the firm said.
As of 2022, Rhino claims that its insurance was offered in more than two million homes, which helped renters save at least $1 billion in cash.