MotoRefi has raised more than $24 million to date. The company raised last February $8.6 million in a Series A financing round. That round, which would later grow to $9.4 million, was co-led by Accomplice and Link Ventures. The Series A round followed $4.7 million in seed financing that MotoRefi revealed in March 2019.
A month before the COVID-19 pandemic had actually spread out to The United States and Canada, vehicle fintech start-up MotoRefi– recently armed with nearly $9 million in equity capital– was preparing to bring its refinancing platform to the masses.
CEO Kevin Bennett, and the investors behind the company, saw the opportunity to service Americans who collectively hold $1.2 trillion in car loans. What they didnt prepare for was the unexpected uptick in need sustained by COVID-19 and the unpredictability and mayhem that the pandemic created.
MotoRefi, which was born out of QED Investors in 2017, established a car refinancing platform that handles the whole process, consisting of finding the very best rates, paying off the old loan provider and re-titling the automobile. The business has benefitted from the convergence of 2 trends stimulated by COVID-19 that has turbocharged its organization: a sped up adoption of fintech across the economy and growing attention towards personal financing..
Now, financiers are pouring more money into the startup to help it maximize the spike in demand for vehicle refinancing.
MotoRefi stated Friday it has actually raised $10 million in a round led by Moderne Ventures. Liza Benson, a partner at Moderne Venture, will join the board.
” Many people are taking a look around stating how can they conserve cash?” Bennett said, commenting on the events of the previous year. “And while car refinance historically remains in a relatively low awareness classification of individual finance, that interest has truly grown and sped up through 2020.”.
For circumstances, Google look for auto refinance increased about 40% in 2020 over the previous year, he included.
The business said its earnings increased by sixfold, its workforce tripled to more than 150 people and the number of lending institutions on its platform doubled over the past year. MotoRefi said it re-financed more than $250 countless automobile loans in 2020.
” We in fact werent intending on raising twice in a year,” Bennett said. “But the growth had been quite noticeable from the investor perspective in the market.”.
That new capital will be used to employ more workers and expand its offerings, according to Bennett, who noted that MotoRefi now runs in 42 states and Washington DC.
MotoRefi has raised more than $24 million to date. The Series A round followed $4.7 million in seed financing that MotoRefi revealed in March 2019.