InsurTech Rhino secures $95 mn investment, targets $500 mn in direct savings for renters in 2021
By Pavithra R
Rhino, a New York City-based insurtech company pioneering security deposit insurance, has announced securing $95 mn in funding led by investment firm Tiger Global Management.
The funding round also includes existing major investors, Kairos and Lakestar VC, as well as Lakehouse VC and additional strategically aligned insurance and real estate investors.. The financing comes as Rhino plans an ambitious expansion, building on its growth in recent years. Launched in 2017, Rhino tackles the housing affordability crisis in America by replacing cash security deposits with smart, affordable insurance so that 110 million American renters can maintain control of their cash. It’s flagship product, security deposit insurance, acts as a direct replacement for a cash security deposit.
Over the past 18 months, Rhino has helped American renters and their families save over $250 mn. The firm has seen a 1,500% growth in Contracted Annual Recurring Revenue (ARR), from $4 mn in January 2019 to $60mn in January 2021. The InsurTech plans to scale its expansion in 2021, targeting over $500 mn in direct savings for renters and doubling its headcount to over 200 employees.
“Putting renters first in our business has given us the opportunity to become renter advocates at a national level. We advocate for renter-friendly legislation like Renter’s Choice because nearly half of Americans are unable to afford a $400 emergency expense and that makes housing affordability one of the most pressing issues in America right now. With $45 billion sitting locked away in escrow accounts, unusable for both renters and property owners alike, we need common-sense legislation that can put that money back into the pockets of people who need it the most–renters,” said Paraag Sarva, CEO at Rhino.
Rhino is planning to invest its latest funding in continuing to help renters achieve financial freedom by increasing its availability through partnerships with property owners, advocating for renter-friendly legislation at the city, state, and federal levels, and bringing new products to market.
“We are excited to support the Rhino team. Security deposit insurance is still in its early days, but we believe it will become an increasingly popular product for renters,” said Scott Shleifer, Partner at Tiger Global Management.
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