Obligo raised new funding for $35 million.

The mentioned company intends to spend the financing received to accelerate the development of its flexible solutions for making security deposits for the residential rental market. The firm also plans to use some of the money to launch additional products.

Currently, Obligo is experiencing rapid growth and is on a trajectory towards profitability. The relevant information is contained in the company’s press release, which was published last Monday, October 21.

Roey Dor, chief executive officer and co-founder of Obligo stated that the mentioned additional resources and the announced partnership with property management software provide the firm with unique opportunities to become the best deposit solution for millions of homes in the United States.

The company’s press release also noted that it provides an alternative to security deposits, using letters of credit from Wells Fargo, open banking, and artificial intelligence to determine the eligibility of renters to rent without a deposit.

Obligo has formed partnerships with developers of property management software. In this case, firms such as AppFolio, Buildium, and Yardi are meant. The relevant information is also contained in a press release published by Obligo.

The last round of financing for the company was co-led by 83North and True Global Ventures. True Global Ventures Partner Lilia Shirman will join the firm’s board of directors, according to the press release.

Lilia Shirman stated that Obligo is a game-changer for the practice of using machine learning and artificial intelligence in the real estate area. Also, in this context, it was noted separately that the company’s growth and strategic channel cooperation with partners testify to the tremendous value that they deliver to both renters and property managers.

Omri Dor, chief operating officer and co-founder of Obligo, in 2018, during a conversation with media representatives, stated that security deposits are a pain point for both tenants and property managers, noting that the firm offers a way to change how they are done. He also underlined that the relevant technology is already available.

Obligo became a Wells Fargo partner in June 2022. At that time, a statement was made that landlords and property managers using the company’s solutions would receive additional protection of letters of credit from a financial institution.

In January, Obligo teamed up with BNY Mellon as part of the global investment firm’s BNY Ascent Program. The purpose of the mentioned project is to identify and collaborate with exceptional technology companies that offer innovative solutions for the financial industry.

At a proof-of-concept phase, the parties to the partnership successfully validated the ability of Obligo to integrate into the core banking services. This ability means that the company will be able to provide its own suite of solutions for security deposits directly from its banking portal.

Roey Dor said that the firm by being part of BNY Mellon’s Ascent Program has accelerated and strengthened its ability to collaborate with key financial institutions.

As we have reported earlier, TrueLayer Raises $50 Million.