Home Lending Tech Platform Roostify Announces $32 Million Funding Round

Another week means another FinTech deal. Today, Roostify announced that it had raised $32 million in its latest round. The Series C was led by Ten Coves Capital with principals at Stone Point Capital as well as returning investors Cota Capital, Mouro Capital, Colchis Capital, Point72 Ventures, and JPMorgan Chase also participating. To date, Roostify has now raised a total of $65 million. With the latest injection of capital, Roostify says it will continue to leverage its innovative AI in order to make the home buying experience better for all involved. Additionally, the company states that it plans to grow its employee base by 50%.

Roostify offers a digital platform that helps to simplify the mortgage lending process for both consumers and institutions. That investment seems to be paying off as the startup has seen impressive growth over the past year. As the company notes, volume on their platform increased by 250% in 2020. This was likely at least partially due to the pandemic necessitating a shift to digital services. In any case, the company was able to expand, currently supporting more than 200 lending institutions and seeing approximately $50 billion in monthly loan volume.

Speaking to what his company does and what’s made them successful as of late, Roostify CEO Rajesh Bhat said in a statement, “Having easy access to meaningful digital tools is key to helping lenders thrive in a digital-first world. That’s why we are hyper-focused on perfecting and digitalizing the entire home buying journey from beginning to close. We design meaningful, end-to-end solutions that solve the complex challenges leading home lending institutions face on a daily basis.” Bhat also acknowledged what the funding round would mean for the startup, adding, “With this capital infusion, we will accelerate our vision of simplifying home lending without compromising on quality and time-to-market.”

Meanwhile, Ten Coves Capital Managing Partner Dan Kittredge said of his firm’s investment in the company, “The opportunity to re-design the future of home lending through technology cannot be overstated, as the mortgage lending industry has been relatively slow to embrace digital technologies. Roostify is well-positioned to accelerate the digitization of home lending infrastructure, and we are excited to partner with the Roostify team to help them power this market transformation.”

The recent success of Roostify — as evidenced by this latest investment — shows that the appetitie for FinTech solutions is only growing. Moreover, the company’s business model once again highlights the potential that exists for traditional institutions and startups to work together in a mutually beneficial manner. With that, this certainly won’t be the last be the last time we hear about such partnerships and investments as the FinTech sector looks forward to a successful 2021 and beyond.


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

Apple Begins Rolling Out BNPL Platform Apple Pay Later

More than nine months after initially announcing plans to offer its own "buy now, pay later option, Apple has begun rolling out its new platform. With Apple Pay Later, customers will be able to finance purchases by paying them off over the course of six weeks. These short-term loans come with no fees or interest. Currently, the company is inviting certain (randomly selected) users to access the platform. Like with...

Credit-Building Tool StellarFi Raises $15 Million

A credit-building platform is adding to its coffers, announcing a fresh injection of funding. This week, StellarFi (previously known simply as Stellar) announced that it had closed a $15 million round. The Series A was led by Acrew Capital, while ATX Venture Partners, Trust Ventures, Dream Ventures, Interplay, Accomplice Ventures, Vera Equity, FJ Labs, Fiat Ventures, Gaingels, Kelmhurst, Oyster Funds, Hilltop Ventures, Permit Ventures, Kindergarten Ventures, J2 Capital, Socially Financed...

Rocket Companies Introduces Rocket Visa Card for Homebuyers

Rocket Companies — the parent company of Rocket Mortgage, Rocket Homes, Rocket Loans and Rocket Money — is now adding a branded credit card to the mix. This week, Rocket introduced the Rocket Visa Signature Card. Not only will the new offering integrate with Rocket Money but will allow cardholders to earn up to 5% back. With the Rocket Card, customers can earn 5 Rocket Rewards on every purchase they make....