UK-based digital savings and mortgage platform Tembo has raised £14 million in a Series B funding round, led by Goodwater Capital, as it seeks to scale its savings app.
Existing investors including Aviva, Ascension Ventures, Love Ventures and McPike Family Office also participated in the Series B round.
Tembo, which was co-founded by Richard Dana, Eddie Ross and Geoff Wright in October 2020, will use the proceeds to grow its savings app, and launch new product lines.
The company also plans to strengthen its unique mortgage proposition, with the introduction of new schemes to support a wider variety of customers to boost their affordability.
Currently, Tembo has access to more than 100 lenders, 10,000 mortgage products and 25 bespoke mortgage schemes to uncover a borrower’s true affordability, including a specialist range of ‘Income’ and ‘Deposit Boost’ family mortgages.
In the past 12 months, Tembo has helped more than 4,000 first-time buyers to purchase their first home and 35,000 future buyers to start saving for a deposit with the Tembo Lifetime ISA.
Customers are able to top-up their Tembo Lifetime ISA with recurring Direct Debits, or via one-off Open Banking payments, provided by GoCardless ‘Instant Bank Pay’.
Dana, co-founder and chief executive officer of Tembo, said: “As one of the world’s largest consumer-focused investors, Goodwater’s mission is to enable businesses that can bring positive change to the world.
“We’re delighted to have such an experienced team onboard alongside our existing investors, as we continue in our mission to make home happen, against the odds.”
He added: “Goodwater’s support will enable us to rapidly expand our savings platform, launching competitive products that will enable our customers to save and invest more as they build their deposit. Plus, we have plans to further solidify our positioning in the market as the go-to player for finding a way for borrowers.”
The funding round brings the company’s total funding raised to £20 million.
“Goodwater Capital is thrilled to support Tembo’s exceptional team, whose innovation is transforming access to home ownership in the UK,” said Edward Robinson, partner at Goodwater Capital.
“By combining cutting-edge technology with customer-focused solutions, Tembo has rapidly grown to help thousands of first-time buyers achieve what once seemed impossible. We’re proud to partner with such a fast-scaling business as they continue to lead in bringing affordability and opportunity to the housing market.”
