Tembo Money is a London-based fintech company working on the mission to transform consumer lending through the power of family. Now, the company announced that it has closed a £2.5 million funding post its official launch in June 2021.
Eyes to expand its offerings
The investment round was led by Aviva and Fair by Design, the venture fund managed by Ascension Ventures and backed by Nationwide, Big Society Capital and Joseph Rowntree. The funds will help Tembo optimise its technology and drive the expansion of its offering as the company continues to focus on its mission to address the ‘poverty premium’ and help millions of prospective homeowners buy their first property sooner.
Speaking on the news, Tembo Co-Founder and CEO, Richard Dana said: “The average first-time buyer is confronted by a number of significant obstacles on their route to homeownership, and for many these were thought of as insurmountable. We’re on a mission to change this mindset and help turn the tide on the generational wealth gap, by helping families work together to give first-time buyers a fast, affordable way to increase their deposit. This funding will allow us to do that, and we’re incredibly happy that major players in finance and technology like Aviva and Fair by Design are joining us on this journey.”
Helps first-time property buyers
Being the brainchild of finance and technology expert Richard Dana, Tembo’s portfolio includes a range of specialist mortgages from leading lenders in the UK. Its family lending products – Income Boost and Deposit Boost allow first-time buyers to lean on loved ones to help them buy the property without requiring their families to have a cash lump sum.
Deposit Boosts allow a willing family member to unlock money from their existing property, using that capital to top up the first-time buyer’s deposit or create one from scratch. Income Boosts allow a family member to allocate some of their income to the homebuyer’s mortgage application in order to increase their borrowing potential.
As per the company, over 70% of its users to date wouldn’t have been able to buy without these products. On average, they have saved £14,000 in interest charges with Tembo.