South Africa: Fedgroup Private Capital invests in insurtech platform

South African insurtech platform LeaseSurance, underwritten by Bryte, has raised R3 million ($158,780) in a seed financing round led by Fedgroup Private Capital.

LeaseSurance offers lease insurance for residential property operators and asset owners. Traditionally, landlords have relied on cash deposits for protection against tenants defaulting. “Unfortunately, though, the usefulness of a cash deposit has limitations. Cash deposits present administrative challenges and limited protection against rent loss and damages, creating financial constraints for both tenants and landlords,” comments Paul Schaefer, CEO of LeaseSurance.

LeaseSurance’s B2B, tech-driven lease insurance addresses these concerns for landlords by reducing the administrative burden, replacing cash deposits with affordable monthly fees, and lowering bad debts.

“LeaseSurance has created the foundation for an end-to-end enterprise insuretech property platform which resonates with Fedgroup’s 30-plus years’ experience in the property industry. Our investment will be used to continue to build the solid foundation required to grow this truly exciting and much-needed solution in the property sector. With this investment, LeaseSurance now forms part of the broader property ecosystem within Fedgroup. Our curated network of providers allows us to unlock value in assets and support property owners and their tenants, while reducing waste through the provision of utility management services that incorporate smart technologies around water and energy,” commented Sheldon Friedericksen, general manager of Fedgroup Private Capital.

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