The gradual homeownership firm says the round was led by existing investors Allianz X and Augmentum Fintech, as well as new funders Volution, Love Ventures and Cur8 Capital.  

It will use the cash “to provide cash runway to breakeven point”, and as part of that aim will see it extend partnerships with mortgage brokers and lenders.  

The firm’s gradual homeownership business plan is a part-buy part-rent model, which allows borrowers to buy a home at up to 10 times household income with a 5% deposit. The remaining cash for the home is put up by its funding partners, who are paid back by the borrower in instalments.  

Wayhome, which was founded in 2016, says it currently buys properties at a rate of £100m a year, but intends to boost this to £200m a year in 12 months.  

Among its investors, Augmentum Fintech has backed digital news service interactive investor and online lender Zopa, while Allianz X was an early funder of payments business Stripe.  

Wayhome chief executive Nigel Purves says: “Due to the way that the gradual homeownership model works, the rising interest rates seen since September’s controversial mini-Budget have delivered even greater demand for our product.   

“With the recent ending of the Help to Buy scheme, there are now hundreds of thousands of would-be homeowners seeking alternative ways to access the property ladder.  

“This significant raise will fuel our ambitions to double the pace at which we can help new homeowners within 12 months.”  

Augmentum Fintech chief executive Tim Levene adds: “As an early supporter of Wayhome, Augmentum has long believed in the huge potential of gradual homeownership in the UK market.   

“The traction achieved by the team has validated the technology platform and business model, as well as the scale of the opportunity ahead.   

“With the closing of this round Wayhome enter their next phase of growth, remaining on track to become a category-defining company in European fintech.”