Dwelly secures $170M to transform UK letting agencies into software platforms.

      The London startup is acquiring independent lettings firms and integrating them into an AI platform, with EQT Growth leading the equity investment and Trinity Capital providing the debt financing. The UK lettings sector continues to operate through phone calls, paperwork, and the slow process of arranging repairs, and Dwelly is wagering that much of this can be managed by software. The London-based startup recently raised $170 million in a Series B funding round, which included $95 million in equity and a $75 million debt facility. It intends to utilize the funds to purchase independent lettings agencies and transition them onto an AI platform that oversees daily operations. EQT Growth facilitated the equity portion, while General Catalyst, s16vc, Begin Capital, and DVC participated, along with a list of angel investors prominent in the European AI space. The CEOs of Legora, Synthesia, and ElevenLabs contributed funds, as did Philipp Freise, a partner and co-leader of European private equity at KKR. Trinity Capital provided the $75 million in debt, but the company did not disclose its valuation.

      Dwelly describes itself as an AI-native operating system for lettings and property management, adopting a unique roll-up model. Instead of merely aggregating agencies for greater scale, it acquires independent firms and transitions them to its proprietary software, which manages communication between tenants and landlords, coordinates maintenance, collects rent, and ensures compliance. The current trend in proptech favors consolidation, as seen with robotic listing cameras and the $800 million deal for Zonda, which concluded CoStar’s data empire, yet few competitors have attempted to purchase agencies outright.

      According to the company, the key selling point is productivity. Dwelly reports managing over 15,000 properties and a £350 million rent roll, claiming it ranks among the top-10 agencies in the UK. It asserts that its agents manage over 300 units each, roughly three times the 100 units a typical manager might oversee. These figures stem from Dwelly's reporting rather than independent verification, so they should be viewed as aspirational rather than definitive, although the direction is evident.

      Founders Ilya Drozdov, Dan Lifshits, and Dmitry Khanukov all bring considerable experience from Uber, Gett, and McKinsey before focusing on the UK rental market. “Dwelly is AI-first by default: we assume AI should be able to perform every operational task,” stated Drozdov, the CEO. This foundational belief, rather than any specific feature, is what this funding round aims to support.

      For tenants, the main promise is speed. Zeynep Yavuz-Willson of General Catalyst described Dwelly’s offering as “a question answered in seconds,” which is significant in a market where delays in repair responses can result in days without heating or hot water. Proving quicker response times, rather than a standout acquisition, is what the software needs to demonstrate, as this is the aspect incumbents find most challenging to automate.

      The new funding will be allocated in three ways, according to the company: further development of the AI platform, additional acquisitions, and an expanded range of products for landlords and tenants, including legal protection, rent guarantees, financing options, and a contractor marketplace. The debt line is important as it allows Dwelly to continue acquiring agencies without having to dilute its equity frequently. This aligns with the broader trend of implementing agentic software in the more tedious aspects of real estate, where tasks are repetitive and profit margins have historically been slim.

      It's been a rapid year for Dwelly; the Series B round occurred just five months after receiving $93 million in a Series A round in February, with the two rounds collectively bringing in over $260 million in less than a year.