London-based Tembo raises €16.8 million to support first-time property buyers | EU-Startups

British digital savings and mortgage platform Tembo has secured €16.8 million in Series B funding, bringing its total funding to €24 million.

The round was led by Goodwater Capital, with participation from existing investors including Aviva, Ascension Ventures, Love Ventures, and McPike Family Office. The funds will help Tembo expand its offerings, scale its savings app, and introduce new mortgage schemes to address affordability challenges in the UK housing market.

Richard Dana, CEO and Co-founder of Tembo, stated: “We founded Tembo to help make homeownership happen for the hundreds of thousands of people who have been locked out of the property market in the UK. Over the past year alone, we’re proud to have helped thousands of first-time buyers buy their own home, often when they thought it was impossible. As one of the world’s largest consumer focused investors, Goodwater’s mission is to enable businesses that can bring positive change to the world. We’re delighted to have such an experienced team onboard alongside our existing investors, as we continue in our mission to make home happen, against the odds. Goodwater’s support will enable us to rapidly expand our savings platform, launching competitive products that will enable our customers to save and invest more as they build their deposit. Plus, we have plans to further solidify our positioning in the market as the go-to player for finding a way for borrowers.”

Tembo was co-founded by Richard Dana, Eddie Ross and Geoff Wright in October 2020 at the height of the pandemic. Tembo aims to make homeownership more accessible for first-time buyers and those facing financial constraints. The platform offers access to over 100 lenders, 10,000 mortgage products, and 25 bespoke schemes, including its Income and Deposit Boost family mortgages. According to Tembo, their Lifetime ISA provides market-leading rates to help customers save for their first property or other financial goals.

Over the past year, Tembo has enabled 4,000 first-time buyers to purchase homes and supported 35,000 users in starting their deposit savings journey. Its platform combines cutting-edge technology with tailored advice, aiming to empower users to maximise affordability and realise their homeownership dreams.

Edward Robinson, Partner at Goodwater Capital, commented: “Goodwater Capital is thrilled to support Tembo’s exceptional team, whose innovation is transforming access to home ownership in the UK. By combining cutting-edge technology with customer-focused solutions, Tembo has rapidly grown to help thousands of first-time buyers achieve what once seemed impossible. We’re proud to partner with such a fast-scaling business as they continue to lead in bringing affordability and opportunity to the housing market.”