Zero Deposit says it has received ‘significant’ additional funding from existing shareholders, including a number of estate agents, as it launches its own full stack insurer, Equitable Rental Insurance Ltd (ERI).

The fundraise, totalling £1.8m, provides capital to launch the new insurer and for Zero Deposit to deliver its next phase of growth.

All capital was raised from existing shareholders, including Connells Group, Acorn Group, KFH, Knight Frank and The Dispute Service (TDS).

The move to set up its own insurer continues Zero Deposit’s commitment to a fully regulated deposit replacement product, providing agents, landlords and tenants with the additional security of a regulated product.

Richard Twigg, Connells Group finance and commercial director, commented: “Connells Group is a long-standing supporter of Zero Deposit and its market-leading product, and we are delighted to continue investing in the business and team. We see Zero Deposit as a key feature within our lettings toolkit across the Group.”

Sam Reynolds, CEO at Zero Deposit, said: “It’s a hugely exciting new phase for Zero Deposit; launching our own insurer offers our partners the significant benefits of a regulated, secure product while we gain more flexibility to make improvements to the product and underwriting at pace.

“This funding round equally allows us to further invest in establishing Zero Deposit as the norm in the rental market and deliver our ambitious plans for 2022.”