We're on a mission to become the go-to destination for renting. Join us.
Mercia is a specialist asset manager with a focus on regional businesses seeking venture, private equity or debt finance to scale their businesses.
- £1.1m turnover in FY22, £800k in Annual Recurring Revenue*
- 20K registered landlords, 1,500 managed properties across the UK
- Strong leadership backed by a team of experts & excellent service
- Innovative rental platform & proven recurring revenue model
Industries such as banking, retail and travel have successfully transitioned from bricks to digital. Boosted by Airbnb's recent success in the short-term homestay market, landlords are now waking up to the benefits of letting online.
Founded in 2008 by Jonathan Daines, lettingaproperty.com offers a smarter way to let property, where landlords can get their rent paid on time, legal protection and home emergency cover – all backed by excellent lettings support.
We’ve grown steadily over the years, refining our offering and proving our recurring revenue model. We've assembled a strong leadership team and a board of advisors with proven experience of rapidly scaling businesses. And we've built an innovative SaaS rental platform.
On the back of our successful £750K capital raise from Mercia Asset Management, we're extending this opportunity to our landlord and tenant community, plus a wider investment audience.
Everything is in place and we believe the timing is right. Join us, as we aim to become the go-to destination for renting.
Substantial accomplishments to date
On the back of our proven recurring revenue model and "excellent" rated service, we plan to seize this market opportunity and scale at pace.
Thanks to our relentless focus on delivering excellent service, we've enjoyed an 80% subscriber increase over the last two years, with excellent customer retention, and a churn rate averaging less than 1% during that time.
Some notable milestones:
• 20,000 registered landlords
• 1,500 managed properties
• £24 million in rental payments
• £800,000 annual recurring revenue in 2022*
• £1.1 million turnover in 2022*
We've also built an innovative rental platform that securely connects landlords and tenants to rent online, enabling simple end-to-end property management.
Technology innovations and features include:
• Digital wallets and open banking**
• Built-in legal compliance assistance
• Next steps rental progress tracker
• Advert performance optimisation
• Digital tenancy contract maker
• Message centre and notifications
• Secure document storage
• Landlord and tenant Help Centre
The entire rental process can be managed from any device, anywhere, at any time. And everything is backed by our "excellent" rated service and support, delivered by a team of talented experts.
There are around 4.4 million homes in the UK Private Rented Sector (PRS). 20% saw new tenancies in the last year, creating a Serviceable Available Market of over £1.2 billion in annual letting fees and 890K new moves that could be managed through our platform.
lettingaproperty.com currently owns just over 0.1% of this market. So we've only scratched the surface. Currently, that percentage equates to more than 1,500 properties managed across the UK, with each landlord on one of our three paid subscription plans...
This proven business model produced around £800,000 in recurring revenue in 2022*, and we've seen 80% subscriber growth in the last two years. Additionally, we offer a range of landlord products and ancillary services.
We plan to service 1.2% of the rental market. That's 10,500 new clients on subscription plans. And a strong growth story as we journey through future funding rounds.
Use of proceeds
The funds we raise in this round will help us to build on our achievements to date, by accelerating customer onboarding & increasing subscribers, with the aim of boosting recurring revenue, and capturing greater market share.
This will fuel our marketing and public relations activity, focused on creating stand-out campaigns and messaging intended to disrupt, engage, and promote growth – building awareness and generating eyes on site.
It will also support our product development roadmap, as we strive to improve our rental platform, optimise performance, and add further features and functionality.
With the solid foundation of our proven business model, strong leadership team, and innovative rental platform, we feel there is a real opportunity to capture greater market share. And as our landlord footprint grows, so do our opportunities to add revenue streams.
Join us, as we aim to become the Airbnb for longer-term letting and the go-to destination for renting. Simple property management from any device, anywhere, at any time. lettingaproperty.com makes renting better, for everyone.
* based on unaudited management accounts
**provided via our partner platform, Customate, who are authorised as an e-money firm by the Central Bank of Ireland under the European Union (Account) Regulations 2018 (Register ref: C95957)
The company currently has 3 classes of shares: A Ordinary, B Ordinary and C Ordinary. All investors in this round, including Seedrs investors, will be receiving Series C Ordinary Shares.
All of the shares have voting rights and the right to receive dividends, however the C Ordinary shares have a 1 x non participating preference on liquidation and exit. Therefore, the C Ordinary shareholders will receive their initial investment amount first before the remaining proceeds are distributed between all shareholders pro rata.
Please note that the C Ordinary Shares are EIS eligible.
The company has the following outstanding loans:
1. £184,353.66 Coronavirus Business Interruption Loan at an interest rate of 2.33% per annum. The loan is to be repaid by 15 May 2026.
2. £176,452.58 Enterprise Finance Guarantee Loan EFG Loan at an interest rate of 3.9% per annum. The loan is to be repaid by 29 July 2029.
3. £100,000 debt to a former shareholder. This debt is being serviced by a 'buyback agreement' in which the Company is buying back shares in the Company that were previously held by this individual. This debt is being paid off in instalments, at zero interest, and will be repaid by 1st of Sept 2024.
The funds raised from this investment round will not be used to repay these loans.
£750,000 of the investment being reflected as part of the amount raised was received by the company in June 2022. The investment is on the same terms as the Seedrs investment.
LettingaProperty.com is a trading name of Propmedia Ltd. Propmedia Ltd are an FCA Introducer Appointed Representative of Alan Boswell Insurance Brokers Limited, who are authorised by the FCA to provide home insurance services. Propmedia Ltd FRN 507148.
T&Cs apply. Perks refer to services available at lettingaproperty.com only and cannot be exchanged for cash equivalent.
Perks must be redeemed within 36 months of issue date (close of Seedrs campaign) and can be transferred to another landlord.
Letting plan credits include a 12 or 24-month subscription to the specified lettingapropety.com letting plan.
Find a Tenant advertising credits include one property listing on Rightmove, Zoopla and Prime Location for a period of up to 8 weeks.
Mid-term inspection credits can be redeemed at any point within an existing tenancy period.
All products are subject to our website and platform terms, property advertising terms, and letting plan terms.
For more detail, please refer to our Terms page at https://lettingaproperty.zendesk.com/hc/en-gb/c...
Note from Seedrs:
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them. If you are claiming EIS tax relief, you should check with a tax advisor to determine the implications of accepting any and/or offers.
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