Income Verification Startup Truework Raises $50 Million
A company that helps lenders close loans with greater ease and speed has secured a significant funding round. This week, Truework announced that it had raised $50 million. The Series C was led by G Squared with participation from returning investors Sequoia Capital, Activant Capital, and Khosla Ventures as well as newcomers Indeed, Human Capital, and Four Rivers Group. With the funds, Truework intends to increase its hiring, while also fueling product development and growth.
Truework is a FinTech platform focused on employment and income verification for credit applicants, including mortgage, auto, and consumer lenders. According to their site, the service can return data from more than 35 million U.S. employees instantly. This is accomplished by having access to payroll providers such as Gusto, Zenefits, Paylocity, and others. The company says that its platform has helped increase applicant conversion by 14%, while reducing the cost of verification by 60% per loan.
Commenting on the core of the company’s efforts, Truework CEO Ryan Sandler stated, “Automation and efficiency are at the heart of what we do at Truework, and building the future with a consumer-first mindset goes into every decision we make. With access to over 35 million (and counting) US employee records, Truework enables lenders to convert more borrowers and make faster credit decisions with verified income.”
Regarding the recently-raised round, he added, “Series C funding will help us further empower both sides of the verification equation and help build a more efficient, secure, and stable credit system.”
As for what lead investor G Squared saw in the company, the firm’s partner Spencer McLeod explained, “Truework’s vision, leadership, and technology are skillfully-calibrated to the current landscape. Rising rates and market uncertainty are catalyzing lenders to optimize their approval process. People applying for loans expect decisions to be made quickly, they seek options that offer control over personal data and insight into how it’s used. Truework has delivered that solution to some of the nation’s largest banks and most future-forward investors.”
As recent reports show, FinTech funding has fallen off so far in 2022 for a number of reasons. Because of this, it’s encouraging to see that significant rounds are still being raised. In terms of Truework itself, the company seems well on its way toward establishing a tool that will not only be useful to traditional lenders but could also be helpful for fellow FinTechs. With an extra $50 million to fuel it forward, it will be interesting to see how Truework expands going forward.