British digital savings and mortgage platform Tembo has secured €16.8 million ($17.8 million) in a Series B funding round, aiming to expand its services and tackle the ongoing affordability challenges in the UK’s housing market.
This latest investment brings the company’s total funding to €24 million ($25.5 million).
The funding round was led by Goodwater Capital, a global venture capital firm specializing in consumer technology investments.
Existing investors, including Aviva, Ascension Ventures, Love Ventures, and McPike Family Office, also participated, signaling continued confidence in Tembo’s mission and business model.
Founded in October 2020 by Richard Dana, Eddie Ross, and Geoff Wright during the height of the COVID-19 pandemic, Tembo was established to make homeownership more attainable for first-time buyers and those facing financial hurdles.
The platform offers access to over 100 lenders, 10,000 mortgage products, and 25 bespoke schemes, such as Income and Deposit Boost family mortgages, which are designed to enhance borrowing potential and deposit sizes through family support.
With the new capital, Tembo plans to scale its savings app and introduce innovative mortgage schemes tailored to the needs of modern buyers.
The company intends to launch competitive savings products to assist customers in building deposits more effectively, strengthening its position as a go-to solution for borrowers navigating a challenging property market.
Over the past year, Tembo has facilitated home purchases for 4,000 first-time buyers and supported 35,000 users in initiating their deposit savings journey.
Its Lifetime Individual Savings Account (ISA) offers market-leading interest rates, helping customers save for their first property or other long-term financial goals. The platform combines advanced technology with personalized advice, aiming to maximize affordability and empower users to achieve homeownership.
Goodwater Capital’s investment is expected to accelerate Tembo’s growth trajectory. The venture capital firm’s focus on consumer-centric companies aligns with Tembo’s mission to provide innovative, customer-focused solutions that address affordability issues in the housing sector.
The collaboration is poised to drive significant positive change in the UK property market.
Tembo’s existing investors have reiterated their support by participating in the Series B round. Insurance giant Aviva and venture capital firms Ascension Ventures, Love Ventures, and McPike Family Office have all contributed additional capital.
The company’s future plans include further solidifying its position as a key player for borrowers and continuing to introduce products that address the evolving needs of consumers. The company’s efforts are particularly significant in the current economic climate, where traditional pathways to homeownership are increasingly out of reach for many.