LeaseSurance, a pioneering InsureTech platform, secures seed funding to drive growth and innovation

JOHANNESBURG, 28 AUGUST 2023 – LeaseSurance, a pioneering InsureTech platform underwritten by Bryte, has successfully raised R3million in a seed financing round led by Fedgroup Private Capital. The funding will be instrumental in advancing LeaseSurance’s mission of enhancing the real estate ecosystem through its innovative lease insurance offering by expanding its team, and further developing cutting-edge technology solutions for the industry.

LeaseSurance offers lease insurance for some of South Africa’s leading residential operators and asset owners. The product has benefits for tenants and landlords alike, especially in a country characterised by low GDP growth, high unemployment, high inflation and interest rates – all of which place pressure on tenants.

Traditionally, landlords have relied on cash deposits for protection against tenants defaulting as a result of these pressures. “Unfortunately, though, the usefulness of a cash deposit has limitations. Cash deposits present administrative challenges and limited protection against rent loss and damages, creating financial constraints for both tenants and landlords,” comments Paul Schaefer, CEO of LeaseSurance.

LeaseSurance’s B2B, tech-driven lease insurance addresses these concerns for landlords by reducing the administrative burden, replacing cash deposits with affordable monthly fees, and lowering bad debts. As a result, landlords gain up to five times more protection, resulting in an improved Net Operating Income (NOI) for their properties.

The solution also makes it possible for landlords to remove current barrier concessions such as discounts and lower deposits, saving millions on the bottom line.

Fedgroup Private Capital’s investment in the company sets the stage for the company to build on this offering. “This is an exciting development for us. It comes at a time when we are ready to take our product to the next level,” Schaefer says.

Sheldon Friedericksen, General Manager of Fedgroup Private Capital, says that Fedgroup was impressed by LeaseSurance’s commitment to innovation. “LeaseSurance has created the foundation for an end-to-end enterprise InsureTech property platform which resonates with Fedgroup’s 30+ years’ experience in the property industry. Our investment will be used to continue to build the solid foundation required to grow this truly exciting and much-needed solution in the property sector. With this investment, LeaseSurance now forms part of the broader property ecosystem within Fedgroup. Our curated network of providers allows us to unlock value in assets and support property owners and their tenants, while reducing waste through the provision of utility management services that incorporate smart technologies around water and energy.”

Wim Morland of Bryte Insurance Company Limited, which underwrites LeaseSurance’s business, echoes Friedericksen’s excitement. He says that the company is proud to be associated with an organisation which is at the forefront of innovative property and insurance solutions, and continues to look for ways to advance further. “This investment equips LeaseSurance to enhance its product offering, creating even more advantages for tenants and landlords alike,” he comments.

Schaefer notes that, with the capital injection from FedGroup Private Capital, LeaseSurance is now poised to continue on an exciting growth trajectory that has been in place since the company’s establishment in 2020, and which has seen it amass clients including leading JSE listed residential landlords and other large, privately held property groups.

“We are looking forward to providing an even better service for our client base,” Schaefer continues. “We are extremely excited to have FedGroup on board as our partners as we enter the next stage of our journey, and work towards our ambitious goals. FedGroup’s domain experience in the insurance and property markets is a significant advantage, and the funding positions us to lead the business into its next phase,” Schaefer concludes.

About LeaseSurance

LeaseSurance is the country’s leading InsureTech platform for real estate.

LeaseSurance uses financial technology to optimize assets in rental real estate by replacing security deposits with lease insurance. LeaseSurance offers a comprehensive B2B solution to rental real estate owners and operators, providing them with a data-driven risk engine and data platform to boost operating income and optimize portfolio performance.

Underwritten by Bryte. Bryte Insurance Company Limited is a licensed insurer and an authorized FSP (17703).

About Fedgroup

Fedgroup is a diversified financial services group offering a range of financial products across investments, long-term insurance, lending, and fiduciary services, augmented with complementary non-financial products and services that add greater value to our clients and partners. Established in 1990, Fedgroup has grown into a specialist South African financial services provider, with over R10 billion in assets under management and administration. Fedgroup prides itself on its strong governance framework underpinned by people, process, and technology.

With over thirty years’ experience in origination and deployment, the entities within the Group are able to leverage on the expertise and capabilities made available, to generate shared profitability amongst the Group of companies. Our unique approach allows us to put people and long-term sustainability ahead of short-term profit. As innovators in the impact investing space, we have the requisite experience and expertise that not only guides investment decisions in this arena but also contributes to our ability to structure new alternative investment offerings, including our specialist endowment portfolios.

About Bryte Insurance Company Limited

Bryte Insurance Company Limited is Southern Africa’s premier, proactive business risk specialist. Through its unparalleled industry insights, proven expertise and foresight, Bryte Insurance partners with customers and brokers to protect their businesses and improve their risk profiles. Bryte Insurance Company Limited is a subsidiary of Fairfax Financial Holdings Limited. Fairfax is a holding company based in Toronto, Canada which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.


Paul Schaefer

Jane Steinacker

Nkululeko Dhlamini