The platform’s services include finding rates for customers, paying off old lenders and re-titling vehicles. The company claims its platform saves consumers $100 per month on average in car payments, made possible by working directly with credit unions and other lending institutions.
MotoRefi CEO Kevin Bennett told TechCrunch that the company will use the funding to build out its product line, hire more staff and is now in a position to be self-sustaining.
“Thankfully, we moved beyond the world where we are raising capital and then raising more capital as we run out of capital,” Bennett said in an interview with TechCrunch. “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.
MotoRefi has recently hired senior level executives, partnered with SoFi and opened a new headquarters in Arlington, Virginia, according to TechCrunch.
The investment also included funding from IA Capital and returning investors Moderne Ventures, Accomplice, Link Ventures, Motley Fool Ventures and CMFG Ventures. Jade Mandel, vice president on the growth equity team within Goldman Sachs Asset Management has joined MotoRefi’s board of directors as a result of the funding.
MotoRefi previously raised $4.7 million in a seed round led by Accomplice, and $19.4 million in two Series A rounds led by Accomplice, Link Ventures and Moderne Ventures, with the most recent taking place just months ago in January 2021.
Bennett told TechCrunch that the platform is due to issue $1 billion in loans by the end of the year, a significant increased compared to $250 million it handled in 2020. The platform is currently available in 46 states and Washington DC, but plans to be available in every state by the end of the year.
The auto refinance market in the US has hit $40 billion, with overall auto loan debt valued at $1.3 trillion. The company’s momentum and upwards trajectory is reflected in its impressive growth over the past year, with a sevenfold increase in revenue and fivefold increase in loan volume from the first quarter of 2020 to the first quarter of 2021.