Goldman Sachs leads $ 45 million investment in Fintech automotive start-up MotoRefi – TechCrunch
MotoRefi raised an additional $ 45 million in a round led by Goldman Sachs. Just five months after investors invested $ 10 million in this FinTech startup to accelerate the auto refinancing business,
The startup has developed an auto refinancing platform that handles the entire lending process, including finding the best interest rates, paying off old lenders, and resetting car titles. According to MotoRefi, the platform saves consumers an average of $ 100 per month on car payments. It has also achieved this goal through its direct collaboration with lenders. The company’s refinancing tools grew steadily until the COVID-19 pandemic was in full swing. CEO Kevin Bennett said MotoRefi plans to issue a billion dollar loan by the end of the year, five times more than the same time last year.
Bennett said the short delay between cycles was driven by investor confidence in the fast-growing metrics and basic economics surrounding the business.
“Frankly, we hadn’t planned for funding yet, but they (Goldman Sachs) were round, given the relationships we’ve established and the performance and success of our business. It was good to get ahead of the schedule and move the schedule 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 creates jobs to support its growth. In 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 head office and in partnership with SoFi. Jade Mandel, vice president of venture capital and growth stocks at Goldman Sachs, 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 auto refinancing market is $ 40 billion. However, the total mortgage debt is $ 1.3 trillion. With 40 million auto loans each year, MotoRefi promises a constant flow of new potential customers.
Investor IA Capital and new capital injections, including returning supporters Modern Ventures, Accomplice, Link Ventures, Motley Fool Ventures and CMFG Ventures, will continue to create products and services and hire more people. MotoRefi has raised $ 60 million since its inception in 2016.
Bennett believes the company is currently in a self-sustaining position.
“Fortunately, we’ve gone beyond the world of raising capital and raising more when it’s depleted,” he says. “I think we have a great sustainable business, so in a way the avenues are endless and we’re building a very profitable business. I’m not saying we’ll never collect money again. No, but it’s done on the basis of strategic considerations, not needs. “
Goldman Sachs leads $ 45 million investment in Fintech automotive start-up MotoRefi – TechCrunch Source link Goldman Sachs leads $ 45 million investment in Fintech automotive start-up MotoRefi – TechCrunch