New York City-based InsurTech Rhino recently pulled in $95 million in new financing, money that will propel growth of its security deposit insurance business.

Investment firm Tiger Global Management led the round. Existing investors also participated including Kairos and Lakestar VC, as well as Lakehouse VC and additional unnamed insurance and real estate investors.

Rhino, launched in 2017, focuses on replacing cash security deposits with insurance it says is affordable “so 110 million American renters can maintain control of their cash.” Its security deposit insurance serves as a direct replacement for a cash security deposit. Instead of a large upfront cash deposit, renters pay Rhino a small monthly fee that can be as little as $1.50 per month, and Rhino insures the property owner for damages that might occur and lost rent, the company explained.

Rhino said it now employs 100 people, triple the level it had 18 months ago. As well, it claims to have expanded from 200,000 home customers to more than 1 million today.

Rhino said it will scale its expansion in 2021—targeting over $500 million in direct savings for renters and doubling its headcount to over 200 employees. The company said growth plans are driven by the need for more renter support with the COVID-19 pandemic, as well as greater adoption from both landlords and renter customers.

Plans call for Rhino to invest its latest funding round into making its security deposit insurance more widely available through partnerships with property owners, advocating for renter-friendly legislation at the city, state, and federal levels, and bringing new products to market.

“Security deposit insurance has already seen great success and is an industry poised for explosive growth,” Rhino Chairman Ankur Jain said in prepared remarks.

Source: Rhino