:Different co-founders Ruwin Perera and Mina Radhakrishnan. Source: Supplied.
Proptech startup :Different has entered into voluntary administration after failing to secure adequate funds to continue running the business.
Documents listed by the Australian Securities and Investments Commission (ASIC) on Thursday show Amanda Coneyworth and James Stewart from KPMG have been appointed administrators of the company, which was also confirmed to SmartCompany by a KPMG spokesperson.
“The voluntary administrators have now commenced an urgent assessment of the business with the intent to commence an orderly sale of :Different’s assets and intellectual property as soon as possible,” they added.
A date is yet to be set for an initial creditors meeting, but SmartCompany understands it must take place within eight days of entering into voluntary administration.
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Founded in 2017 by husband and wife team, Ruwin Perera and Mina Radhakrishnan, :Different offered a property-management SaaS platform for landlords and renters.
While it originally facilitated automatic rent payments, maintenance requests, and house inspections for private rentals, it has expanded over the years to also service real estate agencies.
Since launching it had several rounds of successful capital raises, including $1.3 million in seed funding in 2017 and $3.5 million in a round led by Airtree and PieLAB back in 2019.
In 2021, the startup received $25 million in Series B funding, led by CommBank’s x15Ventures capital arm and Antler, and partnered with CBA to provide offers to customers as part of the investor lending experience.
“AirTree invests in companies with large, structural market opportunities, but that doesn’t make them immune to market cycles,” an AirTree spokesperson said in an email to SmartCompany.
“These challenges don’t define the entrepreneurs or their potential, and it’s important to acknowledge the hard work, dedication and contribution to the tech ecosystem the team at :Different have made.”
:Different was unable to continue operating without VC money
As we’ve seen over the past 18 months, venture capital has been tight thanks to a vastly different economic climate compared to 2021.
The result has been a string of closures, including instant-grocery giant Milkrun, which quickly raised $88 million but was unable to become profitable without further cash injection.
Unfortunately, :Different has been met with a similar fate. SmartCompany understands the business required additional funding to continue building and scaling the platform. As it was unable to acquire more funds it made the decision to wind down the business and appoint KPMG as administrators.
SmartCompany also understands the startup had already paused its growth and integration plays prior to this decision.
A representative for :Different confirmed with SmartCompany that its leadership team is working closely with KPMG and its team of property partners will continue to be on hand to support existing customers.
It’s SmartCompany‘s understanding that the voluntary administration won’t affect :Different customers and tenants and they’ll still have access to the app. It’s currently unclear how many customers currently use the platforms.
“We share the disappointment expressed by the :Different founders that they have been unable to scale the business as planned, and understand the decision they have taken against the backdrop of the circumstances,” a CommBank spokesperson said in an email to SmartCompany.
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