A London startup that helps flatmates split the costs of their bills through an app has received $US1.2 million (£800,000) in funding from Seedcamp, Playfair Capital and the London Co-Investment Fund, which is backed by the Mayor of London.
Splittable’s app, launched just six months ago on iOS, Android and web, is already used by “tens of thousands” of housemates in the UK, the US, and other countries.
The company said the investment will be used to grow the Splittable engineering and marketing teams, support further marketing initiatives, and fund the delivery of an integrated payments platform.
“Dealing with shared expenses in the home can be a huge source of conflict,” said Splittable cofounder Nick Katz. “I learned the hard way, falling out with a friend over our household bills. I’ve come across countless problems in my time sharing nine properties in London.
“My cofounder and CTO Vasanth Subramanian and I decided it was high time to build a solution to save other renters from the same fate. Our vision is to harmonise the relationship between people and their homes, creating the best experience of living together. We’re thrilled to have the backing of these top investors to deliver on our vision and support more renters through their often frustrating house-sharing journey.”
Splittable said it is actively seeking partnerships with universities, student unions, landlords, and agents who focus on student and young professional lettings.
The app is one of the few companies to have caught the eye of the London Co-Investment Fund, which raised £25 million from the Mayor of London’s Growing Places Fund last December to co-invest in seed rounds between £250,000 and £1 million.
The Mayor of London, Boris Johnson said: “London’s tech and science sector is flourishing and the city is a hotbed of talented and ambitious people buzzing with exciting ideas who are setting up new companies in their droves.
“I am delighted that the London Co-Investment Fund is helping companies like Splittable to make its ideas a reality and deliver jobs and growth for the capital.”
But not everyone sees a use for the app. Guardian journalist Lauren Razavi said the app actually did the relationship between her and her flatmates more harm than good. She wrote, for example, that she was irritated when “a few drinks in to my Friday night, at the end of a long week, I was informed that a pack of 99p surface wipes had been acquired.”