AI-powered lettings business Dwelly has secured £125 million in funding to support its acquisition strategy of independent letting agencies and expand its technology platform across the UK and into European markets.
The funding round was co-led by EQT Growth and General Catalyst, comprising $95 million in equity and a further $75 million through an expanded debt facility from Trinity Capital, subject to final terms.
Growth trajectory
Dwelly currently manages approximately 15,000 properties across the UK with an annual rent roll of around £350 million. The company’s business model involves acquiring independent lettings businesses and integrating them onto a shared AI-powered operating platform whilst maintaining their local brands and teams, rather than licensing software to agents.
The firm’s AI technology handles functions including tenant enquiries, onboarding, rent collection, maintenance, compliance, contracts and communications between landlords, tenants and contractors. This approach differs from traditional lettings agents who manage properties using conventional software systems.
Deployment plans
According to the company, the funding will be allocated towards acquiring additional independent agencies, expanding AI capabilities across lettings and property management operations, developing financial products for landlords and tenants, and supporting expansion into selected European markets.
Ilya Drozdov, Co-Founder and CEO of Dwelly, said: “Dwelly is AI-first by default: we assume AI should be able to do every operational task. That changes what a lettings agent can be. AI takes over the transactional layer, while our people become advisors to landlords and tenants.”
Nils Petter Nygaard, Managing Director at EQT Growth, stated: “Ilya, Dan and the team are building one of the most notable AI companies in Europe. EQT has invested in business services for decades, and Dwelly represents a fundamentally different model.”
Market context
The investment comes as the UK lettings sector faces increasing regulatory scrutiny and operational challenges. Recent enforcement actions, such as a Lancashire landlord being fined £5,600 for repair failures, highlight compliance pressures in the sector.
Zeynep Yavuz-Willson, Partner at General Catalyst and new Board member at Dwelly, commented: “Dwelly has reimagined the tenant experience: a question answered in seconds, a viewing booked in minutes, a contract signed without walking into an agency office.”
Craig Fox, Managing Director of Tech Lending at Trinity Capital, added: “Dwelly has continued to execute since its previous financing, growing its agency network and scaling its integration model. We are pleased to support the company as it expands across the UK lettings market.”
The company states that its ownership model provides access to years of communication history, landlord preferences, property records and operational knowledge from each acquired agency, enabling improvements to be deployed across its network. The firm has not disclosed how many agencies it has acquired to date or its target acquisition numbers.
