Snappt, a California-based proptech startup that helps landlords detect fraudulent rental application documents, announced raising a $100 million Series A led by Insight Partners, according to a press release.
The company, which claims a 99.8% accuracy rate, says it will use the funding to accelerate product development, increase its sales and marketing efforts and expand market reach.
Snappt’s software enables property managers to accurately screen tenant applications and detect when financial documents, like pay stubs and bank statements, have been fraudulently altered.
It says this helps landlords avoid bad debt and costly evictions, and keep high-risk residents out, noting that one in eight applicants commits said fraud.
By detecting these altered documents, Snappt says it helped its customers avoid more than $105 million in bad debt in 2021. The company said these savings showcase a monumental year of growth for the company, adding that it saw apartment unit and revenue grow over 700% last year.
“Our vision is to dramatically lower the number of fraudulent tenant applications that go undetected, helping our customers save millions in eviction costs and minimize risk,” stated Daniel Berlind, CEO and cofounder of Snappt, in the release.
“Insight Partners’ alignment with this vision will enable us to scale and continue the momentum,” Berlind said.
New York-based early stage venture firm Interia Ventures also participated in the round after leading Snappt’s $1.5 million seed round, according to dot.LA.
The company’s service is now used by over 1,000 multifamily properties across the U.S., including four of the top five property management companies in the country. While Snappt has a focus on real estate, it says that other potential use cases include mortgages, auto loans, utility bills and health care documents.
“At the core of what we’ve built is a fraud detection engine. It’s more about how we tune it and the information that we have available,” Berlind said.
In other recent proptech news, Ocrolus announced a new document automation integration within the ICE Mortgage Technology‘s Encompass platform. Emerald Stay also surpassed its crowdfund goal with weeks left in its Seedrs campaign.