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.