RentGuarantor (RGG) , a provider of rent guarantee services to prospective tenants including students, benefit claimants, and retirees, announced a £2.0m fundraise via the issue of 800k new shares at 250p.
RentGuarantor said it would use the funds raised through the subscription to fund further expansion over the forthcoming year, such as hiring of new staff and marketing activities, as well as for general working capital. Additionally, funds will be be applied toward costs associated with RGG's planned move from the Aquis Stock Exchange to the AIM market of the London Stock Exchange.
The subscription is planned to close on June 6, 2025. A further announcement on the results is expected on or before that date.
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RentGuarantor announces a £2.0m fundraise via subscription at 250p, to coincide with its planned share subdivision and move to the AIM market from AQSE. The effect should be a stronger balance sheet to support the move and continued growth, as RGG looks to expand its shareholder base within the much larger AIM market.
The fundraise will extend RGG's cash runway through its rapid growth phase, marked by a 92% YoY revenue growth as reported in the Q1 2025 update. The revenue surge was fueled by the addition of 91 new partners (including 4 councils), a prior successful fundraising round, and increased brand visibility through the attendance of 7 major industry events during the period.
Earlier in 2025, RentGuarantor reported similarly stellar full-year results, with a 72% increase in turnover to £1.27m in FY24, building on similar revenue performance in FY23 and FY22. The surge in sales was driven by a 50% increase in tenant contracts, coupled with a 14% rise in the average contract price. Strong demand for RGG's services was underpinned by 165 new partnership agreements with a range of customers from across the letting sector.
In FY24, RGG exceeded its previously set target for new users, letting agents, and landlord clients, growing to over 25,000 new signups per month. Simultaneously, RGG expanded its professional rent guarantor services to over 1,100 letting agents in the UK. The new £2.0m fundraise, alongside the £455k subscription completed in January 2025, should fuel RGG's growth in FY25, enabling the group to expand its headcount and meet surging demand for professional rent guarantor services in the UK.
Demand has been boosted by regulatory changes, with the upcoming Renters' Rights Bill set to introduce new legislative requirements for the rental market. The regulation is good news for RGG's professional services as it is likely to drive increased demand from both tenants and landlords seeking secure and compliant rental solutions.
Overall, RGG is well-positioned for continued growth in the short-to-medium term. Favourable regulation and a solid pipeline of partnerships and continued business development, alongside the £2.45m boost to the balance sheet, sets the stage for continued growth in user numbers. RGG continues to expand its footprint and brand awareness through partnerships and product development, with its latest platform able to handle 1,000 applications per minute, supporting further growth in the B2B market.
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