Re-Leased raises USD $12.5 million to boost AI in real estate

New Zealand-founded property software company Re-Leased has successfully completed an oversubscribed funding round, raising USD $12.5 million. The investment was led by Movac, with participation from Icehouse Ventures and existing investors. This influx of capital will enable Re-Leased to enhance the use of artificial intelligence (AI) within its software—particularly through its recently launched AI-tool, Credia—while also providing early investors with liquidity. Additionally, the funds will support the company's ongoing expansion in the UK and the US.

In response to the Covid-19 pandemic, Re-Leased repositioned its operations to focus on capital efficiency, allowing the company to break even. This strategic shift has resulted in strong growth rates and robust unit economics, which have drawn significant interest from investors despite a challenging global investment climate. "Our vision is to help our customers run a better real estate business. The global real estate industry is facing significant headwinds and a cyclical downturn, and in this challenging environment, we're seeing more property professionals recognise that automation and AI give them a distinct advantage in the market," stated Tom Wallace, Founder of Re-Leased.

Over the past year, Re-Leased has concentrated on capital and operational efficiency while investing in its product offering. This approach has been fruitful, resulting in a customer base of 1,400, with 350,000 tenants and a managed rent roll of USD $7.5 billion. Movac's General Partner Jason Graham remarked, "Re-Leased is not a 'nice-to-have' but the core operating system of their customers. As a result, it has been embedded across some of the largest real estate companies globally and is perfectly positioned to leverage its AI technology into real value for its customers."

Re-Leased has honed its AI capabilities to address specific challenges in the commercial real estate domain. "In real estate, there are endless tasks that are necessary, yet low value and repetitive—so the opportunity for AI innovation is huge. We want to enable our customers to get back to what they love: building relationships and engaging in creative, value-add work," explained Wallace. Credia, the AI-powered brain of Re-Leased launched in June, aims to significantly boost productivity by automating routine tasks. For instance, the AI can read maintenance requests from tenants, send out requests for quotes, create work orders, and write emails. "Repetitive jobs that previously took 5-6 minutes now take 30 seconds. Credia acts as the best intern you've ever had," Wallace elaborated, adding, "It's AI—but not just for the sake of it."

Wallace views Credia as merely the starting point in Re-Leased's AI journey. The company is currently developing an AI 'Agent' that promises end-to-end automation of entire business functions, such as compliance and data extraction. Wallace believes this development will "completely transform the industry as we know it and the experience of the people who work in it."

The newly raised capital will also facilitate the expansion of Re-Leased's go-to-market team in the UK and US.