Toronto fintech startup Chexy has announced their launch and a $1.3 million financing round led by Crossbeam Ventures. The pre-seed round also included participation from Groundbreak Ventures, Ferst Capital Partners and strategic angels in the real estate and fintech spaces.
Chexy is Canada’s first payments platform that enables tenants to earn rewards through consistent on-time rent payments.
Through the Chexy platform, tenants can earn rewards by using their preferred credit cards for rent payments and earn additional cashback towards their rent through everyday spending with popular household brand names.
Chexy is breaking the archaic nature of rent payments through introducing a much-needed modernization, allowing tenants to pay online and easily split with roommates.
In addition, this summer Chexy is launching its credit building offering, which is particularly valuable for newcomers to Canada, as it helps them build credit through their largest expense—rent—enabling them to build the necessary financial foundation faster.
“I’ve been a renter in Canada since 2014, experiencing and witnessing the rising rental prices in our metropolitan cities. Renting is a significant expense and often non-negotiable due to limited housing supply. We thought, what if banks and merchants, already investing in loyalty and incentives, could help “pitch in” to rent? That’s where Chexy was born,” said Liza Akhvledziani, CEO and Co- Founder of Chexy.
“It puzzled me that a phone bill appears on credit reports, but not a rent payment. Credit building is a challenge for new and young Canadians, and Chexy aims to help them without additional loans. Our users aspire to own homes, and rent reporting through Chexy accelerates their path, potentially allowing them to save thousands in interest costs in the future.”
Chexy recognizes the significance of credit history and enables tenants to improve their credit scores by reporting rent payments to credit bureaus, enhancing their financial standing.
Tenants can also earn rewards on spending with their favourite brands like Nike, Apple, Sephora and redeem it on their rent payment, allowing the opportunity to reduce your rent through your everyday shopping.
The user-friendly interface allows for easy setup of recurring rent payments, tracking of credit-building progress, access to rewards, and viewing transaction history.
As Chexy grows, they aim to strengthen the tenant-landlord relationship by introducing a dedicated dashboard for landlords, providing simplified rent collection, management, and financial transparency, allowing landlords to monitor payments, track rental income, and gain valuable insights.
This funding round will help Chexy grow its team to deliver this incentivizing program to even more renters across the country. Chexy hopes that this becomes a tool for all Canadians to aid in paying rent digitally while earning rewards and building credit on payments.