London-based FinTech Flatfair has raised $11m in funding.

The firm offers renters an alternative to paying an up-front deposit when renting a new property, instead offering a membership charge and a deposit secured against a debit card.

It claims the method means landlords get more than double the protection compared to a traditional cash deposit.

Founded by alumni from Deutsche Bank, McKinsey and Google, Flatfair has established partnerships with real estate firms Spicerhaart, Touchstone and CBRE among others.

The Series A round, led by Index Ventures, also included participation from Transferwise co-founder Taavet Hinrikus and Revolt Ventures, among others.

Index Ventures has previously backed Facebook, Revolut Deliveroo and Squarespace.

The firm said the new funds will help it to build a larger technology team which includes data scientists, product engineers, and business development specialists.

Martin Mignot at Index Ventures said freeing up a fraction of the $300bn is tied up in deposits would make a huge difference to millions of renters.

“There is huge potential for technology to help real estate companies manage operations and revenue in a more streamlined fashion, while offering tenants a better, fairer service,” he said.

“flatfair is already working with global companies like CBRE and Greystar to do this, and today’s announcement will help further expand the flatfair offering.

“I am very much looking forward to supporting flatfair on an exciting journey ahead.”