Obligo, a fintech that aims to make renting as “simple as checking in and out of a hotel”, today announced partnering with Wells Fargo to utilize bank-issued Letters of Credit for landlords and tenants, according to a press release.
The company says the new addition to its product offering means that customers using Obligo will now have access to and benefit of Wells Fargo letters of credit, which guarantee a buyer’s payment to a seller, and enabling renting without the need for a security deposit.
“Wells Fargo has been an incredible advisor on this initiative. They share our vision of leveraging existing bank products in new ways to support proptech innovation and have been extremely agile in helping this updated model come to life. We are excited to announce this strategic initiative as we expand to provide deposit-free living to millions of households nationwide.” stated Roey Dor, CEO of Obligo, in the release.
This additional offering joins Obligo’s existing product suite, including free certified electronic move-in payments, its flexible credit-backed deposit alternative and automated electronic deposit refunds.
Rahul Baig, managing director, head of venture capital coverage at Wells Fargo, also said Obligo is one example of the type of “leading-edge fintech companies” that Wells Fargo likes to support, according to PYMNTS.
The company recently raised a $35 million Series B in November 2021, which brought its total funding raised to date to $50 million. Investors include 83North, HighSage Ventures, 10D, Entrée Capital, Alumni Ventures, MUFG Innovation Partners, and La Maison Partners.
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FinLedger recently spoke with Obligo Chief Technology Officer (CTO), Yiftah Barouch, about the company’s ongoing attempts to eliminate security deposits and its plans moving forward.
In other recent proptech news, Enseo and Volara partnered to introduce voice controls into senior living units. HonestDoor also expanded its free residential home valuations across Canada.