£10m investment set to fuel acquisitions in the private rented sector

Canopy Rent has secured an  investment from specialist growth finance provider, Growth Lending, to support its acquisition growth strategy

Canopy, a leading UK proptech provider of tenant referencing solutions, has secured a £10 million investment from the specialist growth finance provider, Growth Lending, to support its UK expansion. The cash will fund the acquisition of The Lettings Hub Ltd, forming part of a broader growth strategy, while the investment itself forms part of a wider 8-figure funding package, provided by Growth Lending, Hay Wain and West Hill Capital.

Founded in 2017, Canopy is on a mission to build a connected ecosystem for renters, letting agents and landlords by removing friction from the rental journey and empowering letting agents and landlords to make faster, data-driven decisions, while also supporting rental households to improve their financial health. Its core products include RentPassport®, a multi-channel tenant referencing solution powered by AI, Open Banking and credit data, and CanopyGrow, a subscription service designed to help tenants build and improve their credit scores. With the addition of The Lettings Hub’s highly complementary BOX platform, the two tech-driven businesses will expand their national reach, enhance the products available to customers, and further strengthen data capabilities to support the next phase of growth.

As part of its growth strategy, Canopy and The Lettings Hub will continue to operate as two independent brands while aligning key technologies and services to strengthen their combined market offering. The two businesses have already worked in partnership, with Canopy sourcing Tenant Home Insurance products from The Lettings Hub over the past year. Now under one umbrella, the group can capitalise on its combined product suite, data insights and technology expertise.

The acquisition comes at a time of rapid consolidation in the UK lettings market. With increasing M&A activity, shifting regulation and evolving market pressures, landlords and agents are seeking more responsive, data-led solutions. The support from Growth Lending is reflective of the lender’s appetite to support M&A activity within fast-growing, technology-led sectors. The lender, which offers growth capital from £2m, has a strong track record of providing acquisition finance.

Chris Hutchinson, Chief Executive at Canopy, said: “This fundraise marks a significant step forward in our growth journey. By integrating The Lettings Hub into our Group we’re expanding our customer base, enhancing our technology offering and strengthening our ability to serve the UK rental market. Growth Lending’s support has enabled us to move at pace and deliver even greater value to tenants, landlords and agents.”

Adam Brinn, Regional Head at Growth Lending, said: “This deal is an excellent example of how a collaborative approach to lending can truly accelerate the growth plans of a business – our investment, alongside Hay Wain and West Hill, will support Canopy’s ambitious growth plans, empowering the firm to move quickly and decisively as they identify further acquisition targets.

“It has been a pleasure to work with Chris and the Canopy team and we look forward to watching the Group continue to go from strength to strength.”

• For more information about Canopy visit www.canopy.rent
• For more information about growth capital from Growth Lending, get in touch with a member of our expert team