South Africa’s VC firm Kalon Venture Partners have announced that it led an investment round worth SAR 10 Mn (USD 1,465,400) in the country’s Flow, a local proptech app that rewards tenants for good behavior.
Flow, first of its kind in the world, allows tenants in South Africa get rewards for registering, adding property details, paying rent on time, taking care of their home and lots more. With the app, tenants can be rewarded for good rental behavior in the light of their landlords not being active on the app. While there are many benefits for landlords too, tenants that show great occupancy earn thousands of points of every month. This increases their Flow score and grants them access to significant rewards.
Flow has collaborated with leading brand in the spaces of travel, lifestyle, entertainment, homeware and fashion, all within the lives of millennials – who make up a substantial portion of renters in South Africa. The entire funding will be used by the Flow team to accelerate the development of the app. The number app for South African tenants will be fuelled to grow and will see an increase in tenant base. The rewards given to great tenants will as well be significantly increased.
According to a piece of information disclosed to WeeTracker by Clive Butkow, CEO of Kalomn Venture Partners, the VC firm participated in the Pre Series A round with USD 730 K. In addition to the SAR 10 Mn raised, there is a co-investment of SAR 10 Mn from an international VC, which is in its final stages.
In a statement, Butkow said that the investment committee’s decision to invest in Flow was strongly inspired by the quality of the entrepreneurs and the proven track record the startup has. This combined with the tech offering that they have built and continue to develop, made it an easy decision for the VC.
The proptech startup is the contrivance of Daniel Levy, Gil Sperling (Popimedia co-founders) and Jonathan Liebmann (a property disruptor and innovator best known for creating the highly successful Maboneng Precinct in downtown Joburg).
Gil Sperling, CEO of Flow, notes that the property industry, locally and globally, is one of the few verticals which has not seen much innovation, making it an industry ripe for disruption. “Compared with any other industry, the property industry – and in particular the rental market – is archaic and disconnected.