Sydney proptech startup Yabonza was placed in the hands of managers after the capital ran out.
Mark Trowell, who spent eight years at Macquarie Group as a senior project manager and innovation
Their startup wanted to disrupt property management with a tech platform designed to coordinate repairs and maintenance, payments and relationships, reducing administrative costs and time for landlords. It undercut the real estate industry’s average commission of about 7% by charging just 3.9%.
Yabonza has raised more than $15 million in five years and Mirvac COO Gary Flowers chaired the company, which was passed into the hands of Sydney-based administrators Wexted Advisors after a service agreement by the company’s financier was terminated.
Trowell would have left the company at the end of 2021.
Andrew McCabe and Joseph Hayes of Wexted Advisors were appointed trustees on July 26.
“We are conducting an urgent review of the company’s financial position and are working with management to continue trading while an urgent sale of the company and its assets is undertaken,” McCabe said.
“The creditors are in debt in excess of $2.5 million, and our investigation into the company’s affairs continues to determine the reason for the failure and consider possible remedial actions for stakeholders.”
The company raised $1.3 million through a convertible bond earlier this year and then restructured with just three of its original team of 20, including Kinsey, who were still in the company when it was handed over to managers this week.
In 2020, Yabonza, which had also launched in the UK, acquired John Bush’s equity payment startup Easyshare in an undisclosed cash and stock deal, making Bush a co-founder of Yabonza.
In September last year, Yabonza won its first major purchase of 1,500 homes, laying the groundwork for acquiring 5,000 homes by early 2022, alongside a new investment fund that $9.5 million for the purchase.
At the time, the company said it was a The 12% return is paid monthly to investors, and Yabonza expects to have 20,000 properties by the end of 2022, making it one of the largest property management companies in the country.
The company will continue to trade while the trustees look for buyers, with the rental listing now being Yabonza’s most valuable asset.