Refinancing of FinTech motor vehicles MotoRefi raised $ 45 million in a Series B funding round led by Goldman Sachs Asset Management, the company said in a Press release Friday (May 28). Participants in the tour included new investor IA Capital and former funders Modern Ventures, Accomplice, Link Ventures, Motley Fool Ventures and CMFG Ventures.
The startup will use the new capital to continue its trajectory of accelerated growth by strengthening its workforce and investing in its platform.
Based in Washington, DC and founded in 2016, MotoRefi helps people save an average of $ 100 per month on their vehicle payments. The startup is working with credit unions and other lenders to give customers a quick and easy way to save money by refinancing their car loans.
Jade Mandel, vice president of growth stocks at Goldman Sachs Asset Management, said he was “impressed” by MotoRefi’s rapid expansion and its “innovative approach” to FinTech solutions in automotive refinancing. “MotoRefi is building a revolutionary business that is helping consumers save money on what has become a major expense in their lives,” she said. Mandel will be the third woman to join MotoRefi’s board of directors.
MotoRefi saw its revenue increase sevenfold, with volume increasing from the first quarter of 2020 to 2021. The company’s workforce has also increased 2.5 times over the same period, according to the statement.
“In 2020, we have proven that we are the essential platform for automobile refinancing. In 2021, we are expanding this offering to make auto refinancing available to everyone, helping more people save money on their car payments, ”said Kevin bennett, CEO of MotoRefi.
Subprime auto credit defaults are on the rise, with TransUnion in February reporting that 10.9 percent of subprime borrowers – those with credit scores below about 620 – are some 60 days behind, or about 20 basis points from January.
In September, a JD Power study showed that online credit applications for auto loans had increased. Some 40 percent of borrowers said they prefer to do this type of activity online, which could indicate a permanent change after the pandemic.