Landis, a startup that is using the classic rent-to-own strategy to make home ownership more accessible is raising $165 million in a new series of funding from investors that include Will Smith's Dreamers VC and Jay-Z's Arrive, the investment arm of Roc Nation.
The Series A funding round also included investments from Signia Venture Partners, Sequoia Capital, and even the founders of fintech leaders such as Plaid and Cash App.
The company, founded by Cyril Berdugo and Tom Petit, helps aspiring homeowners get on the road to ownership by purchasing their desired home and renting it out to the client while they build up their credit in order to qualify for a mortgage. To do this, the startup also coaches the client on best practices to building their credit, saving for a down payment, and cutting down on their debt.
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“Financial inclusion is really important to us,” said Berdugo. “An aspect of Landis that we’re very proud to be a part of is wealth creation for low-income Americans.”
In the grand scheme, the client ultimately purchases the home back from Landis at a predetermined [price for up to two years after Landis purchases it.
“We are proud to have invested in Landis,” says Will Smith, in a press release. “Landis is an innovative company that also has a social mission we are aligned with. We are excited to be part of a journey that helps Americans achieve homeownership through financial education.”
Neil Sirni, co-founder and president of Arrive adds: “We believe that Landis is determined to build a company that consumers can trust. Our investment demonstrates our commitment to supporting Landis on their mission to make the path to homeownership more accessible, transparent and empowering.”