Aviva-backed digital mortgage broker Tembo has secured £5mn in investment and announced plans to accelerate its growth.
The capital investment has come from two existing investors alongside two new investors, Love Ventures, a specialist financial, property and consumer technology investment fund, and the McPike Family Office.
To date, McPike Family Office have made a number of UK investments including Starling Bank and Acre Platforms.
Existing investors in Tembo, Aviva Ventures and Ascension Ventures have both reinvested in the firm as part of this round.
Set up in 2020, the London-based platform focuses on helping first-time buyers get on the property ladder with financial support from family and friends.
The investment will be used primarily to continue to develop Tembo’s technology, providing users with an instant comparison of affordability and costs for all the available options and buying schemes to help them buy or remortgage their home.
Tembo will also invest in growing its strategic partnerships with a range of wealth managers, house builders and lenders including Barratt Homes and Aviva.
Tembo founder and chief executive Richard Dana commented that the investment will be used to “help thousands more customers fulfil their dreams over the coming years”.
“The market for the unaffordables is continuing to grow, as large swathes of the population have been locked out of homeownership,” Dana said.
He added: “Owning a home is still a dream and aspiration for so many people but the existing market is not set up to help those who are unable to save a deposit or meet affordability on a standard mortgage.
“Over 80 per cent of the customers that we have helped to date have been turned down by a lender or mortgage broker before they reach us. Many customers who would otherwise be trapped in a rental cycle without the support of our products end up paying less money each month for their mortgage than they do for their rent.”
Speaking to FTAdviser last year, Dana said the firm is also exploring plans to expand its offering beyond first-time buyers, eventually moving into equity release and care funding.
jane.matthews@ft.com
