MotoRefi raised an additional $ 45 million in a round led by Goldman Sachs. Only five months after investors invested $ 10 million in this FinTech startup to accelerate the car refinancing business,
The startup has developed a car refinancing platform that handles the entire loan process, including finding the best interest rates, repaying old lenders, and resetting car titles. According to MotoRefi, the platform saves consumers an average of $ 100 a month on car payments. It has also achieved this goal thanks to its direct collaboration with lenders. The company’s refinancing tools grew steadily until the COVID-19 pandemic went into full swing. CEO Kevin Bennett said MotoRefi plans to issue a $ 1 billion loan by the end of the year, five times more than the same period last year.
Bennett said the short timeline between rounds was driven by investor confidence in the fast-growing metrics and the basic economics surrounding the business.
“Frankly, we hadn’t planned for funding yet, but they (Goldman Sachs) were round, given the relationships we’ve built and the performance and success of our business. It was nice to get ahead of the calendar and move the calendar forward, “Bennet said.
The MotoRefi platform is available in 46 states and Washington, DC and will be operational in all 50 states by the end of the year. The startup is increasing employment to support its growth. By the first quarter of 2021, the number of employees had more than doubled from the same period of the previous year to 187. Today, the number of employees has skyrocketed to 250. The company has hired several senior executives, opened a new headquarters and partnered with SoFi. Goldman Sachs Venture Capital and Growth Equity Vice President Jade Mandel has joined MotoRefi’s board of directors.
Bennett believes there is plenty of room for growth as consumers seek ways to rebalance their debt. The US automotive refinancing market is $ 40 billion. However, the total mortgage debt is $ 1.3 trillion. With 40 million car loans each year, MotoRefi promises a consistent flow of potential new customers.
Investor IA Capital and new capital injections, including returning supporters Moderne Ventures, Accomplice, Link Ventures, Motley Fool Ventures and CMFG Ventures, will continue to build products and services and hire more people Used to do. MotoRefi has raised $ 60 million since its inception in 2016.
Bennett believes the company is currently in a self-sustaining position.
“Thankfully, we’ve moved beyond the world of raising capital and raising more when it’s exhausted,” he said. “I think we have a great sustainable business, so in a way the runways are endless and we are building a great profitable business. I’m not saying we’ll never raise money again. No, but it’s done based on strategic considerations, not on need. “
Goldman Sachs leads $45M investment into auto fintech startup MotoRefi – TechCrunch Source link Goldman Sachs leads $45M investment into auto fintech startup MotoRefi – TechCrunch