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.