RentGuarantor (RGG) has raised £1.0 million through a placing to support investment in artificial intelligence, automation and technology infrastructure.
The AIM-listed rent guarantee provider placed 3,448,276 new ordinary shares at 29p each, raising gross proceeds of £1 million. In addition, 6,896,551 existing shares were sold at the same price by Southpaw Limited as part of the placing.
Following admission of the new shares, Southpaw Limited will retain 28,864,149 ordinary shares, representing 19.4% of RentGuarantor's enlarged issued share capital.
The company said the fundraising proceeds will be used to accelerate strategic investments in automation and artificial intelligence, building on plans outlined earlier this month.
Key initiatives include the fast-tracked deployment of AI-enabled rent guaranteeing across RentGuarantor's existing systems and document processing tools. The company expects this to increase processing capacity while reducing manual intervention.
In addition, RentGuarantor plans to expand its data science and engineering teams to support the safe and effective integration of AI within its governance and compliance frameworks.
Part of the proceeds will also be used to strengthen the group's IT infrastructure to improve resilience and scalability as the business continues to grow.
View from Vox
This fundraising provides RentGuarantor with additional capital to accelerate technology-led growth without taking on debt. The focus on AI-driven automation could improve operational efficiency and support higher transaction volumes, while continued investment in infrastructure and specialist talent should help position the company for further expansion in the UK rental market.