<span class="hover:entity-accent entity-underline inline cursor-pointer align-baseline"><span class="whitespace-normal">eGuarantee</span></span>, a Sydney-based proptech company, has raised $4 million in a fresh funding round. The investment was led by <span class="hover:entity-accent entity-underline inline cursor-pointer align-baseline"><span class="whitespace-normal">Correlation</span></span>, a specialist insurance investor that has increased its ownership to more than 60%.

The company plans to use the capital to expand adoption of its digital Lease Bond platform. The product is positioned as an alternative to traditional bank guarantees used in commercial property leases.

Platform volumes rise amid market shift

Demand for digital lease security has grown steadily over the past few years. In under four years, the total value of bonds processed through eGuarantee’s platform increased from $5.6 million to more than $71.1 million.

Most importantly, the value of bonds written rose 338% in the last 12 months. This growth suggests increasing acceptance of non-bank instruments in commercial leasing.

Investor increases stake to majority holding

Correlation’s decision to raise its stake from 25% to a controlling position reflects confidence in the business model. Lance Warner, managing partner at Correlation, said the firm has "high conviction in the opportunity for Lease Bonds to replace bank guarantees."

The investor first backed eGuarantee in 2022. The latest round signals continued support as the company enters its next phase of scale.

Addressing limits of traditional bank guarantees

eGuarantee focuses on replacing bank guarantees, which often lock up large amounts of tenant capital. Executive Chairman <span class="hover:entity-accent entity-underline inline cursor-pointer align-baseline"><span class="whitespace-normal">Stephen Ellis</span></span> said the platform allows tenants to keep working capital available rather than tying it up as security.

Instead of cash-backed guarantees, tenants use a digitally managed bond. As a result, funds equivalent to several months or even a year’s rent can be redirected into business operations.

Value proposition for landlords and tenants

Besides that, the platform also targets landlords who want faster and more transparent processes. Lease Bonds are designed to reduce administrative friction while maintaining security for property owners.

Ellis noted that commercial real estate has been slow to modernise. Therefore, landlords that adopt digital alternatives early may benefit from simpler onboarding and lower operational risk.

Expansion plans across Australia and New Zealand

The new funding will support national expansion across Australia. The company plans to invest in landlord acquisition and strengthen its distribution network.

Once domestic coverage improves, eGuarantee intends to enter New Zealand. This phased approach is expected to support long-term growth while managing risk.

Market opportunity and growth targets

The company estimates the commercial lease security market at around $7.1 billion. Within the next 18 months, eGuarantee aims to capture more than 5% of this segment.

This target reflects management’s view that the shift away from bank guarantees is structural rather than temporary.

Positioning for the next growth phase

The $4 million raise, along with Correlation’s majority ownership, marks a key milestone for eGuarantee. The funding validates both the platform’s growth and the broader demand for digital lease security.

With additional capital and a defined expansion strategy, the company is positioning itself for wider adoption in Australia and selected international markets.

—----------------------