Rhino, a New York City-based insurtech company that pioneered security deposit insurance, raised $95m in funding.
The round was led by Tiger Global Management with participation from Kairos and Lakestar VC, as well as Lakehouse VC and additional strategically aligned insurance and real estate investors.
The company intends to use the funds to continue to expand operations and its business reach 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.
Launched in 2017 and led by Paraag Sarva, CEO, and Ankur Jain, Chairman, Rhino replaces cash security deposits with insurance to enable renters to maintain control of their cash. Its flagship product, security deposit insurance, acts as a direct replacement for a cash security deposit. Instead of a large upfront cash deposit, renters pay Rhino a monthly fee starting at $1.50 per month, and the company insures the property owner for damages that might occur and lost rent.
Over the past 18 months, the company said it has tripled in size to 100 employees and expanded from 200,000 homes to more than 1 million homes today—resulting in over $250 million in direct savings for renters. Over the last two-year period, the company has seen a 1,500% growth in Contracted Annual Recurring Revenue (ARR), from $4 million in January 2019 to $60 million in January 2021.