FinTech rental management platform Obligatory partners with banking giant Wells Fargo to expand its product offering and will now be the only security deposit alternative using bank-issued letters of credit for landlords and tenants.
According to a Press release Monday (June 27).
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Based in Manhattan and founded in 2017 by CEO Roey Dor and chief operating officer Omri Dor, Obligo uses open banking data to determine a person’s eligibility to rent without a traditional cash deposit. It aims to build trust between tenants and landlords and make the rental process as “simple as checking in and out of a hotel,” according to its website.
“Wells Fargo has been an incredible advisor on this initiative,” Roey Dor said in the statement. “They share our vision of leveraging existing banking products in new ways to support proptech innovation and have been extremely nimble in helping this updated model come to life.”
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Obligo raised $35 million in a Series B funding round last November, bringing its total funding to $50 million. The company has been backed by 83North, HighSage Ventures, 10D, Entrée Capital, Alumni Ventures, MUFG Innovation Partners, La Maison Partners and other strategic partners.
Obligo’s product suite includes free certified electronic move-in payments, a flexible credit-backed deposit alternative, and automated electronic deposit refunds.
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Rahul Baig, managing director, head of venture capital coverage at Wells Fargo, said Obligo is an example of the type of “cutting edge FinTech companies” that Wells Fargo likes to support.
Calling Obligo’s solution “unique,” Baig said the company’s “innovative approach” gives tenants “technology options to make their lives easier.”