FinTech MotoRefi Raises $45 Million

Home » FinTech » FinTech News » FinTech MotoRefi Raises $45 Million

FinTech MotoRefi Raises $45 Million

As more Americans look to save money on their auto loans, one FinTech is seeing significant growth — and attracting investors. Last week, MotoRefi revealed that it had raised $45 million. The Series B was led by bank Goldman Sachs with additional participation from Motley Fool Ventures, Moderne Ventures, Link Ventures, IA Capital Group, CMFG Ventures, and Accomplice. This comes just four months after MotoRefi’s $10 million Series A, which was led by Moderne. To date, the company has raised a total of $69.1 million.

Just as their name implies, MotoRefi offers modern tools for refinancing auto loans. As TechCrunch notes, the startup’s platform manages the entire process — from finding the best rates to paying off the previous loan and retitling the vehicle. In turn, customers reportedly save an average of $100 a month on their car loans after using the service. Currently, MotoRefi operates in 46 states as well as in the District of Columbia but the company expects to expand to all 50 states by the end of the year. Also by the end of the year, the startup expects to have issued $1 billion in loans.

In addition to finding success on its own, MotoRefi also recently announced a partnership with another FinTech. Last month, SoFi began working with MotoRefi to offer loan options on its Lantern portal. At the time, MotoRefi CEO Kevin Bennett said of the partnership, “MotoRefi and SoFi share a similar goal of helping average consumers improve their financial lives. At a time when a lot of Americans are making every dollar count, we can think of no better partners in launching our API than a FinTech powerhouse like SoFi.”

As for the investment round, Bennett told TechCrunch that the timing was unexpected, stated, “We candidly weren’t planning on raising yet, but they (Goldman Sachs) were comfortable given the relationship we have built and the track record and success of the business, to preempt the round and move that calendar up.” Looking to the future, Bennet said, “I think we have a great sustainable business and so we, in some sense runway is infinite, and we are building a great profitable business. That’s not to say that we won’t ever raise again, but it will be based on strategic considerations, as opposed to out of necessity.”

Between the impressive growth, their partnership with SoFi, and the fact that they’ve raised two rounds of funding in less than six months, MotoRefi is clearly having a moment. That’s not only good news for the startup but is potentially also good for consumers hoping to save money on their car loans. As demand for refinancing increases, expect MotoRefi to continue its upward trajectory as well.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Amazon Highlights Small Businesses Ahead of Prime Day 2021

On June 21st and 22nd, e-retail giant Amazon will celebrate its annual Prime Day — its Black Friday-esque sales event. Ahead of those dates, the site is incentivizing support for small businesses. This includes allowing shoppers to earn a credit for shopping small, rewarding Amazon credit cardholders with additional discounts,...

FinTech Cash Advance Startup Clair Raises $15 Million

Another early-stage FinTech investment round is now in the books. This week, Clair announced that it had raised $15 million. The Series A was led by Thrive Capital — a firm which itself recently raised money, closing its Thrive VII fund at $2 billion in February. Some of Thrive's past...

Citi Introduces 'Custom Cash' Card With Up to 5% Back

It looks as though the battle of the credit card issuers is continuing to heat up. In addition to banks recently upping some of their offers to record highs, recent weeks have seen several new card products revealed. The latest card to shake thing up with its debut is the...