A startup buying up U.K. real estate brokers and streamlining their processes with AI gets $93 million in funding to fuel expansion

A startup founded by former Uber and Gett executives that is aiming to roll-up independent real estate agencies across the U.K. and modernize their operations using AI and other digital technology has raised £69 million ($93 million) to further its expansion.

Dwelly, which is based in London, said the funding comprises £32 million in equity led by General Catalyst, the Silicon Valley venture capital firm, with participation from Begin Capital and S16VC, alongside a £37 million debt facility from Trinity Capital, the Nasdaq-listed alternative asset manager.

The company, which has already acquired 10 real estate agencies, according to its cofounders, plans to use the money it has raised to accelerate its acquisition spree.The U.K. real estate brokerage market consists of roughly 20,000 so-called “lettings firms,” (those that handle leased properties.) These firms collectively manage some 5.5 million rental properties generating more than £100 billion in annual rent and £10 billion in agency commissions, according to Dwelly’s calculations. Despite those enormous sums, the sector remains deeply fragmented: the top 100 firms control less than 30% of the market, and many agencies still run on phone calls, manual paperwork, and ad hoc processes.

“We have crossed 10,000 properties under management, placing Dwelly among the UK’s top 15 largest letting agencies in less than 2 years — an unseen speed of growth for letting agencies,” Ilya Drozdov, Dwelly’s cofounder and CEO, said.

In an interview, Drozdov told Fortune the company currently manages more than £200 million in gross rent. He said........

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