PropTech startup Dwelly, founded by former Uber and Gett executives, has secured $93 Million in a combined equity and debt funding round to accelerate its consolidation of the UK's independent real estate agencies. The London-based company employs an AI-enabled roll-up strategy, acquiring traditional letting firms and integrating its proprietary technology to modernize operations. This significant capital injection will fuel its mission to bring efficiency and scalability to a deeply fragmented property rental market.
A Market Ripe for Disruption
The UK residential lettings market is a colossal industry, generating over $134 billion in annual rent and $13.4 billion in agency commissions. Despite its size, the sector is composed of approximately 20,000 small, independent firms, with the top 100 controlling less than 30% of the market. Many of these agencies still rely on manual paperwork, phone calls, and ad hoc processes, creating significant operational inefficiencies.
The AI-Enabled Roll-Up Strategy
Dwelly’s funding consists of a $43 million equity round led by General Catalyst and a $50 million debt facility from Trinity Capital. This capital is earmarked for an aggressive acquisition strategy, allowing the company to purchase independent agencies and integrate them onto its platform. By acquiring firms, Dwelly tactically buys an established customer base of landlords, a group that is notoriously difficult to win over organically due to long tenancy cycles.
The founders assert that owning the agencies is far more effective than simply selling them software. This approach gives Dwelly control over 100% of an agency's profit and loss, rather than the small percentage gained from a software license. It also allows for the complete overhaul of outdated workflows, ensuring its technology is implemented for maximum impact across the entire business.
Transforming Operations with Technology
Once an agency is acquired, Dwelly’s AI-powered operating system automates key functions while preserving the local brand and staff. In the lettings process, the system handles tenant communications and verification, generating an average of 10 validated offers per property within three days. This has successfully reduced the time to find a tenant from the industry standard of three weeks to under two.
On the property management side, AI-driven chatbots and automated tracking have slashed maintenance resolution times from an average of 50 days down to 20. Co-founder Dan Lifshits emphasized the goal is not to replace agency workers but to augment their capabilities by handling administrative burdens. This frees up staff to focus on higher-value tasks like property viewings and client relationships, improving overall service quality.
Ambitious Growth and Future Outlook
In less than two years, Dwelly has already acquired 10 agencies and surpassed 10,000 properties under management, placing it among the UK’s top 15 largest letting firms. The company currently manages over $270 million in gross rent and plans to expand its team from 300 to over 1,500 by year's end. This rapid growth underscores the effectiveness of its model in a market ready for change.
With its new funding, Dwelly aims to reach 50,000 properties under management by the end of the year, which would position it as a top-five agency in the country. Zeynep Yavuz, a partner at General Catalyst, praised Dwelly for converting analogue processes into scalable software that benefits tenants, landlords, and agencies. The company also has long-term ambitions to expand into Western Europe, with France as a likely first market.
Dwelly's substantial funding and innovative strategy signal a pivotal moment for the UK's property rental industry. By combining strategic acquisitions with powerful AI, the company is not just building a large portfolio but is fundamentally reshaping how rental properties are managed. This approach positions Dwelly as a formidable force, poised to lead a new era of consolidation, efficiency, and technological advancement in the sector.