Ahauz co-founders Karthik Srivats and João Rocha
The firm, which helps first time buyers get on the property ladder, will use the funding to officially launch the platform in London before rolling out nationwide.
Ahauz, a proptech start-up helping first time buyers get on the property ladder, has launched after raising £300,000 of venture capital investment from Forward Partners, an early stage venture fund.
In addition to venture funding, the team at Ahauz have raised a further £2.6m from high net worth property investors, to fund contributions towards the deposit of first time buyers in the UK.
Karthik Srivats (27) and João Rocha (29) founded the business when they saw first-hand the challenges faced by first time buyers in London.
When attempting to purchase a house, they realised that the bank-busting deposit required meant they could not afford it, despite having relatively good monthly incomes.
The pair found that many of their friends had faced similar issues and those who had managed to buy property had had help from parents - something which is obviously not possible for everyone.
They quit their jobs in April 2017 and set about creating the ‘Bank of Mum and Dad for Everyone.’
While Ahauz’s product is similar to the Government’s ‘Help to Buy’ equity loan scheme, Ahauz does not restrict buyers to purchasing new build houses and does not enforce price caps. This means that there are far more houses and postcodes available to buyers.
The company is able to provide buyers with a contribution towards their deposit for up to 15% of a house’s value. With just a 5% deposit, the buyers can now afford a house of large value and access better interest rates.
Ahauz has also partnered with mortgage lenders to ensure that their contribution is accepted as a viable deposit.
Rocha said: “We are excited to officially launch Ahauz and to be able to increase the options for so many aspiring first time buyers, while removing the need to save for a back breaking deposit.”
Srivats added: “Getting that first foot on the property ladder has seemed impossible for so many young people in recent times and we hope that we’ll be able to help them bridge that gap, making homeownership realistic for all.”