A lettings agency group that’s acquired a string of small independent firms in the past two years has now raised a massive £125m for additional purchases.

Dwelly now manages approximately 15,000 properties across the UK, making it one of the country’s ten largest lettings businesses by portfolio size.

It manages approximately £350m in annual rent roll.

Its business model is to acquire and operate independent letting agencies, integrating them on to a shared AI-powered operating platform whilst retaining their local brands. 

The company says this model allows operational improvements developed within one business to be rolled out across its wider network.

It says it’s already using AI to support transactional processes across tenant enquiries, onboarding, rent collection, maintenance, compliance, contracts and communications between landlords, tenants, contractors and property managers. 

“Every landlord and tenant interaction is managed through the platform, allowing routine administrative tasks to be automated whilst agency staff focus on delivering advice, judgment and customer service” it claims.

Dwelly adds that its new funding will be invested across three key areas: expanding its acquisition of high-quality independent agencies across the UK, more AI automation; and developing new financial products for the private rental sector. 

The company also plans to expand into selected European markets.

Co-founder Ilya Drozdov comments: “Dwelly is AI-first by default: we assume AI should be able to do every operational task. That changes what a lettings agent can be. 

“AI takes over the transactional layer, while our people become world-class advisors to landlords and tenants. The goal is to bring a private-wealth level of service to one of the country’s least trusted industries.

“Services are the largest part of the global economy, but until now software has only helped organise work rather than perform it. AI changes that. 

“By combining great local businesses with a shared AI operating platform, we’re building a model that allows agencies to deliver a better experience for landlords and tenants whilst continually improving the way residential lettings are delivered.”

Dwelly says its ownership model provides access to years of communication history, landlord preferences, property records and operational knowledge every time it acquires an agency, enabling improvements made within one business to be rapidly deployed across the wider network.