In this particular case, Caribou is a unicorn.
One of the 2020 Emerging 8 honorees that’s involved in auto refinancing and more announced on Friday that it has closed $115 million in an oversubscribed Series C funding round, which brings the company’s valuation to $1.1 billion, triggering the well-known startup growth moniker.
Caribou, which rebranded itself from MotoRefi in November, said the round was led by Goldman Sachs Asset Management (Goldman Sachs), with participation from new investors, including Innovius Capital and Harmonic, as well as existing investors, including Accomplice, CMFG Ventures, Curql Fund, Firebolt Ventures, Gaingels, Moderne Ventures, Motley Fool Ventures and others.
With the cost of vehicle ownership soaring, Caribou trying to provide consumers with much-needed financial relief, saving its customers on average more than $100 a month on their monthly payments through refinancing.
The company is expanding its services across the auto financial landscape, recently launching its digital car insurance marketplace.
“We are putting people in control of their auto finances, saving them thousands of dollars with a fast and easy process,” Caribou chief executive officer Kevin Bennett said in a news release. “We’re proud of what we are building and grateful to have such a talented team and experienced group of investors backing our vision. We are just getting started.”
Founded in 2016, Caribou has rapidly grown its core auto refinancing offering by connecting vehicles owners with financing providers such as credit unions, community banks and other trusted financial institutions.
Caribou now also provides a quick and easy way to shop and compare car insurance from trusted national carriers in minutes with its new car insurance marketplace.
“By combining technology with expert lending and insurance teams, Caribou is prioritizing transparency and trust in the car ownership experience,” the company said.
Since closing its first contracts for customers a little more than four years ago, Caribou has refinanced more than $1.5 billion in paper, saving its customers over $100 million in total interest over the lifetime of their contract.
The company has simultaneously scaled its business operations across Washington D.C. and Denver, as well as remotely, building a 500-person workforce, up from roughly 40 employees two years ago.
The company said the Series C funding round will help Caribou to continue its strong growth trajectory by investing in its platform, innovative new products and continuing to expand the team.
“Caribou is building an important company with a great culture that helps consumers and lenders in an enormous market. That’s why we’re thrilled to be doubling down on our initial investment by leading Caribou's Series C funding round,” said Jade Mandel, vice president within the growth equity business at Goldman Sachs Asset Management and a member of Caribou’s board of directors.
“In a few short years, Caribou has established itself as the industry leader in auto fintech, already having saved customers more than $100 million on their car payments. We’re excited about the launch of its digital insurance marketplace and we can’t wait for what’s next,” Mandel continued.
Justin Moore is chief executive officer of Innovius Capital.
“We couldn’t be more excited to join Caribou on its mission to put consumers in control of their car payments,” Moore said. “With the costs of car ownership soaring, and macroeconomic headwinds negatively impacting people’s finances, we believe that it’s more important than ever to help people save money.
“Caribou has established itself as the go-to platform to refinance their auto loan and we are excited for all that is to come,” he went onto say.
Caribou’s Series C round builds on a successful $50 million Series B that closed in May 2021, which was also led by Goldman Sachs. The Series C round brings the total funding Caribou has raised to more than $190 million since the company’s founding in 2016.
Continuing our series of special episodes of the Auto Remarketing Podcasts featuring general sessions from this year’s Auto Intel Summit — an added benefit for Cherokee Media Group Premium Members — we bring you a conversation led by Steve Greenfield of Automotive Ventures with some of this year’s Emerging 8 honorees.
Recapping their growth journeys are Mike Hanna of TrueSpot, David Kohn of Dealer Trade Network, Nick Mottas of HopDrive and Glenn Munro of Lender Compliance Technologies.
To listen to the episode, go to this webpage.
Fueled in part by an auto finance company that’s been one of its clients since 2018, AutoFi announced on Monday it has closed $85 million in funding valuing the company at nearly $700 million.
One of the first Emerging 8 honorees and commerce platform for digital automotive sales and financing said the funding included participation from investors Santander Holdings USA, SVB Financial Group, the parent of Silicon Valley Bank, and Crosslink Capital.
“We are humbled to have some of the world’s leading financial institutions share our vision to bring innovation to automotive commerce,” AutoFi chief executive officer and co-founder Kevin Singerman said in a news release. “Finance is a critical part of how people buy and sell vehicles and continues to be a main source of friction in the automotive retail process. Finance must be more integrated into digital experiences.
“With this additional capital we will double down on our mission to bring joy and trust in this market by enabling banks, captives and specialty finance companies to better support the massive transition of offline to online commerce,” Singerman continued.
The company plans to accelerate its investment in its engineering and customer-facing teams.
With four consecutive years of 100% revenue growth, AutoFi said it more than doubled the size of its staff in 2021 to 220 employees. AutoFi’s platform processed more than 1 million automotive financing requests that resulted in more than $3 billion in vehicle sales in 2021.
The company said the investment will further innovation in transformative retailing experiences like AutoFi’s new “RealPayments” offering.
This cloud-based pricing platform can allow auto finance companies to extend their decisioning and pricing capabilities into point-of-search shopping experiences. In seconds, consumers can be pre-qualified for financing and see their actual price and monthly payment across thousands of vehicles.
“No more uncertainty for the consumer and seller on what they can afford and their final monthly payment. RealPayments is one of the most exciting innovations in auto finance in decades,” AutoFi said.
It’s that capability that’s exciting one of the investors and current clients, Santander Consumer USA, which is a wholly owned subsidiary of Santander Holdings USA.
Coinciding with the investment, SCUSA announced the expansion of its partnership with AutoFi.
According to a separate news release, the new SCUSA digital experience will include mobile, desktop and in-dealership tools to identify vehicles on a dealer’s lot that fit a consumer’s budget, as well as specifications to complete deals — streamlining the financing process and allowing consumers to shop for a vehicle however, wherever and whenever they want.
SCUSA highlighted the consumer digital experience will bring new “transaction-ready” vehicle shoppers to its dealers by enabling consumers to preview a dealer’s inventory online and identify vehucke they want and can afford, before they visit the dealership.
Santander Consumer USA president and CEO, Mahesh Aditya said, “Our new digital product suite will connect dealers, consumers and vehicles more effectively than ever before. By personalizing and streamlining the car buying process, everyone wins. Shoppers see exactly what they can purchase, and dealers can self-service each deal to meet the needs of their customers.
“AutoFi is leading the digital evolution of car buying by combining innovation in automotive finance and retailing,” Aditya continued. “We want to help dealers sell as many vehicles as possible, and AutoFi’s platform makes it easier for dealers to do business with Santander Consumer, connecting them more efficiently and effectively with consumers, helping complete transactions faster and bringing finance innovation into the car buying process. We are privileged to be part of AutoFi’s growth story.”
Singerman added these perspectives about the AutoFi client since 2018 that also expanded the working relationship last summer.
“Santander is a global leader in auto finance, and we are excited to expand our partnership with them on this digital experience,” Singerman said. “Both organizations share a deep passion for applying financial technology innovation to make both the car buying and selling process a trustworthy and joyful experience.”
Aditya also credited the work by Singerman and AutoFi co-founder and chief Technology Officer Mandar Gokhale, who “have created a very efficient platform that we believe will take the dealer and customer experience to a whole new level. We are very excited about our future with AutoFi.”
In January, Automotive Ventures chief executive officer and founder Steve Greenfield announced a contest in collaboration with Shell Lubricants to help startups.
On Wednesday, Greenfield highlighted his newest initiative that’s aimed to provide fuel for entrepreneurs; this time connected with dealerships.
Greenfield explained in a LinkedIn post that Automotive Ventures DealerFund is designed to help dealerships “navigate through the next decade of unprecedented change, invest into and participate financially in the autotech startups they help to grow.”
Greenfield started his career in 1999 selling software to dealers and has overseen more than $1 billion in automotive technology acquisitions.
“After 22 years in the industry, it’s become increasingly clear to me that automotive is going to experience more change in the next 10 years than it’s experienced in the past 100. The rate of change seems to only be accelerating,” Greenfield wrote.
“As we come out of this period of artificially inflated profits due to the double-whammy of COVID-19 and inventory shortages, dealerships are going to be challenged as they navigate through a new era of change and uncertainty,” he continued.
“At this point in my career, I’ve probably met with over 500 dealership principals, and I’m witnessing a new emerging generation of owners who are much more technology-native, who view accessing new tech as a source of competitive advantage,” Greenfield went on to say.
In leading Automotive Ventures, Greenfield elaborated about what he’s now seeing.
“I believe that future dealership performance will increasingly be defined by early access to entrepreneurs and innovation. I also believe that dealers are going to help accelerate the adoption of the next generation of autotech startups,” Greenfield said in the post.
“One of the important things that we’ve learned from running an early-stage venture capital fund has been the powerful network effect of harnessing our investors who own dealerships. The positive experience with our dealer investors really triggered an ah-ha moment for us,” he continued.
“We asked ourselves: what if the investors in our fund represented a critical mass of the most progressive dealership locations, the very customers of the technologies in which we aim to invest? And then work closely with these investors to understand their biggest challenges and needs? This would provide us with a unique advantage to identify which companies to invest in, and position us to help those companies be adopted by thousands of the most influential dealerships across the industry,” Greenfield added.
Greenfield described the dealers he’s seeking to be a part of this project.
“In terms of the ideal investor for the fund, we are really looking for the multi-rooftop franchise dealer who views embracing early-stage technology as a source of competitive advantage. They’re generally early adopters. Thought leaders of their 20 groups. They understand that there are significant changes coming to the industry, and believe that embracing technology can help prepare to weather these changes,” he said.
“At Automotive Ventures, we have intentionally focused on building a machine that generates strong returns, generates value for strategic dealership investors, and delivers an accelerated adoption for the companies we choose to invest in. And we’re looking for the right dealers to join us on this journey to build the new Automotive Ventures DealerFund,” he continued.
“I look forward to participating on this journey with you,” Greenfield concluded.
Autotech Ventures isn’t just forging relationships with startups. On Wednesday, the venture capital firm made a move with a company that’s been in business since 1915.
Allison Transmission, a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions, announced has committed to a $15 million investment in Autotech Ventures in an action the company said is helping to pave the way for the next frontier of mobility.
Based in Silicon Valley, Autotech invests in and provides consulting services to early-stage transport technology startups focused on connectivity, autonomy, sharing, electrification and digitization in the transport tech space.
Having made multiple appearances during the Auto Intel Summit hosted by Cherokee Media Group, Autotech is comprised of a team with deep experience in the ground transportation industry, which provides them with a unique ability to engage and support startups that will enhance the future of the mobility sector.
“We are proud to become a limited partner in Autotech Ventures and bolster our corporate development team’s efforts to identify strategic opportunities and invest in innovative companies,” said Todd Bradford, vice president of strategy, business and corporate development at Allison Transmission.
“In a rapidly changing industry, this partnership is further testimony of Allison’s dedication to remaining a leading innovator in propulsion solutions across all the end markets we serve,” Bradford continued in a news release.
The announcement went on to mention that the new partnership with Autotech will provide Allison with direct exposure to relevant startups, venture capital expertise and fully vetted high-tech companies in strategic areas of the transportation industry.
The company added that the partnership also aligns with Allison’s commitment to advance its propulsion solutions to meet and exceed customer demands in the ever-evolving and uncompromising commercial vehicle industry.
Allison went on to mention that its team will benefit from Autotech’s tech scouting, tech absorption and team development capabilities, which provide insight into transport tech market intelligence and facilitate agility in rapidly changing markets, while augmenting Allison’s corporate research and development and business development capabilities.
Allison Transmission chief technology officer Mike Foster noted that these robust offerings will support the company’s internal team in accelerating the cycles of innovation, empowering Allison to remain agile and strengthening its ability to deliver on its brand promise to provide the most reliable and valued propulsion solutions to help its customers work more efficiently.
“Allison recognizes that a variety of technology solutions will be required to cover the commercial vehicle landscape, as the industry continues its evolution,” Foster said.
“Our collaboration with Autotech and the cutting-edge companies they engage with will allow Allison to continue to diversify our portfolio of next-generation solutions,” he went on to say.
Coinciding with new credit facilities and equity financing, Point Predictive launched new products last week that aim to deliver an “unparalleled level” of visibility and control to auto finance companies tackling automation and digital transformation challenges in fraud and risk management operations.
Point Predictive highlighted that its Case Manager & Rules Engine are browser-based SaaS solutions designed to provide teams with an intelligent layer of risk controls, automation logic, action guidance and key metrics across their originations process.
The company explained that this risk management solution has been specifically built for auto finance companies, as it integrates Point Predictive’s full complement of fraud risk scores, alerts, and consortium data with existing loan origination systems (LOS) to streamline operational risk workflows for analysts and underwriters. Traditional solutions offered to the auto industry are generic workflow solutions that require expensive customization to meet the specific needs of the auto industry;
Point Predictive indicated that its Case Manager and Rules Engine are designed from the ground up as “auto first” offerings to include features to help finance companies reduce unnecessary friction for applicants while protecting organizations against a growing influx of fraud and misrepresentation scams and schemes.
Those features include:
— API integration with real-time data synchronization
Case Manager is geared to serve as an independent, fully-synchronized user interface layer that can work seamlessly alongside a finance company’s current origination environment. Teams can review and action individual applications through Case Manager while keeping the application pipeline intact and flowing.
— Live analytics and an operational dashboard
Since all data is synchronized between Case Manager and the loan origination system of record, Point Predictive said the tool can give teams a detailed array of current operational metrics, including application volume, approve/review rates and caseload statistics to optimize staffing and fraud risk exposures.
— Configurable queues
Case Manager can allow finance companies to set up virtual queues to better allocate team resources and accelerate application throughput. This flexible approach to queue management is designed to ensure finance companies source their operations in a highly-custom way toward the goal of moving trustworthy applications quickly through underwriting in the most automated way possible.
Point Predictive added that these queues also can shift focus manual review resources on only those applications that are risky enough to warrant specific actions under the finance company’s rules and configuration.
— Rules management and policy controls
Point Predictive acknowledged that every organization defines the rules and controls necessary to manage risk while growing revenue and profitability. Case Manager can give administrators the ability to define stipulations and other LOS actions with easy-to-use, click-based logic that can be tested before being implemented.
The company said this process can enable changes to be made to risk management policies quickly without waiting for scarce IT resource windows to become available. These rules also power automation logic.
— Automation logic
Point Predicative indicated most rules, policies and procedures for fraud and risk management can be executed without human intervention using Case Manager’s automation logic combined with the Rules Engine using the latest data in the finance company’s environment.
Automation logic, in combination with rules and real-time data integration, can ensure that finance companies are moving as fast as possible without incurring additional risk.
— Filters
Filters can allow finance companies to view and manage subsets of their origination volumes.
With many U.S. auto finance companies processing thousands of applications each day, Point Predictive recognized that narrowing the focus of agents can be difficult, so these filters can allow staff to find and manage only the necessary subset of applicants.
— Case creation
Point Predicative said case creation is designed to be easy for underwriters, call center representatives and supervisors because all current application data is synchronized with Case Manager.
Case narratives can be entered about any risk concern in seconds, aiding a risk analyst review within the correct queue.
— Fraud reporting
Case Manager can enable finance companies to report and track all suspicious applications sent to fraud teams for investigation and can track how cases generated by system rules are dispositioned.
Point Predictive said U.S. auto finance companies are expected to be exposed to more than $7.7 billion in potential fraud losses in 2022. Point Predictive co-founder and chief executive officer Tim Grace explained that’s part of the reason why the company launched these new solutions.
“Point Predictive introduced the auto lending industry to the consortium approach, which gave lenders a cross-industry perspective on the trustworthiness of the information they receive on credit applications,” Grace said in a news release.
“With Case Manager, any auto finance organization is now in a position to streamline its entire fraud and risk underwriting process in a way that is best suited for its own strategy and operational realities,” he continued. “Every lender that has previewed Case Manager knows that it is one of the easiest ways to further reduce fraud loss exposure while growing top line revenue, all in a manner that avoids any disruption to the technology infrastructure in place.”
Point Predictive invites any finance companies that wish to explore Case Manager and other benefits of consortium membership to contact [email protected].
Point Predictive’s new growth financing
In other company news, Point Predictive said it has received new credit facilities and equity financing from CIBC Innovation Banking, Ten Coves Capital and Mosaik Partners.
“The challenges that fraudulent applicants pose to lenders continue to increase in both volume and complexity,” Grace said in another news release. “Our ability to continually refine and expand the company’s suite of fraud prevention countermeasures and to help our customers automate their loan origination processes is more important than ever.
“We are very pleased that our partners at CIBC Innovation Banking, Ten Coves Capital and Mosaik Partners understand the industry’s need, and opportunity before us, to become the trusted automation partner to lenders across verticals,” Grace continued.
Miles Kilburn of Mosaik Partners pointed out, “We have been fans of Point Predictive’s vision from the start.
“It’s been amazing to see the company grow and execute so well against its original vision,” Kilburn said. “We’re excited to continue to support the company with this additional investment, and believe it is well positioned to capitalize on the large market opportunity before it.”
Paul Gibson is managing director in CIBC Innovation Banking’s office in Reston, Va.
“The management team at Point Predictive leads a robust team dedicated to safeguarding lenders across multiple sectors including automotive, mortgage, retail, and others,” Gibson said. “We are excited to support the company as it continues to scale globally and respect the trust and confidence that they have placed in us.”
And Steve Piaker of Ten Coves Capital added, “The consumer data assets Point Predictive has built are unmatched when it comes to fraud and misrepresentation.
“Capturing the history of over 100 million loan applications, including the performance of those applications and corresponding detail around income, employment, and third parties, such as dealers, brokers and correspondent lenders, has allowed the company to compound its data advantage and provide a differentiated suite of fraud-detection solutions that deliver instant ROI for its customers,” Piaker went on to say.
After launching its vehicle subscription service in four states, a Philadelphia-based startup now has more resources to grow.
This week, GO announced that it has secured a $41 million round of financing led by Synterra Capital Management. According to a news release, this funding will enable the company to grow its fleet substantially and expand service nationally.
GO is now live in four states, including Pennsylvania, Florida, New Jersey and Delaware, with plans to announce additional markets later this year.
“We created GO to transform and simplify the experience of getting a car. This partnership with Synterra will accelerate our growth as we expand to meet customer demand in new markets,”GO founder and chief executive officer Michael Beauchamp said in the news release.
GO offers a vehicle subscription service geared specifically toward daily drivers.
Through the service, the company said, its customers in available markets can order their vehicle online in around four minutes and save up to 25% per month. There’s no down payment, and the entire process is handled virtually.
In most cases, GO indicated vehicles are delivered to the customer’s home at no charge.
“Through technology, innovation and efficiency, GO brings customers a seamless experience and lower prices,” Beauchamp said.
To learn more about GO, visit https://www.drivego.com.
Another round of funding that included an Asian automaker and several dealer groups across the United States drove Tekion’s valuation to $3.5 billion, according to a news release distributed on Tuesday.
The valuation arrived as Tekion — innovator of the Automotive Retail Cloud (ARC) — announced a Series D financing round of $250 million, led by Alkeon Capital and co-led by Durable Capital. Other investors included those previously mentioned dealerships as well as Hyundai Motor Co.
The announcement also mentioned that Advent International, who led Tekion’s Series C, Index Ventures who led its Series A, and FM Capital also reinvested in this round. Tekion said those investors are showing strong support for the positive disruption the startup is bringing to the automotive industry and, as a result, rapidly growing business.
Tekion plans to invest its additional capital in the following areas:
— Accelerate ARC platform rollout to dealers across the U.S. and globally
— Set up a customer experience center and expand product innovation hubs in Pleasanton, Calif., and Austin, Texas, focusing on continuous product innovation
— Expand 24/7 support capabilities with a key initiative in-progress: an automotive support center of excellence in West Chester, Ohio
— Rapidly extend OEM partnerships, open API platform capabilities and create a seamless partner ecosystem
“Tekion is turbo-charging the automotive industry by offering an end-to-end, next-generation technology software platform for both car dealers and automotive manufacturers, which provides a rich and unified consumer experience,” Alkeon Capital general partner Deepak Ravichandran said in the news release. “Founder Jay Vijayan has built a strong team to steer his ambitious product roadmap and we are thrilled to be partnering with him on his new journey.
“Tekion is experiencing strong tailwinds in a large, multi-billion-dollar market including cloud adoption for online retailing, connected vehicles, increased consumer expectations for seamless, digital car purchasing experiences and digital vehicle connectivity,” Ravichandran continued. “By building a single, unified cloud platform for manufacturers and dealers, Tekion is also unlocking multiple new markets heretofore unavailable to legacy incumbents limited by archaic technology architecture.
“We believe Tekion is just getting revved up for its multi-year journey in redefining an industry and becoming the market’s leading and dominant player,” Ravichandran went on to say.
Tekion explained that its Automotive Retail Cloud is designed to provide much more than a typical dealer management system (DMS) by modernizing the end-to-end automotive retail journey and transforming the sales and service experiences to suit modern consumer needs.
ARC can enable seamless consumer engagement and the highest level of operational efficiencies with its cutting-edge platform built with IoT, Machine Learning and AI at its core.
With this new round of Series D funding, Tekion said it is well-positioned to continue its unprecedented growth and market penetration.
Here are the assessments of two other firms involved in that funding.
“We’re impressed by Tekion’s talented team of innovators who have transformed the automotive retail market with a game-changing platform dedicated to delivering the best dealer and retail experiences. Tekion is disrupting the industry with its cutting-edge cloud-based platform, and we believe in the company’s capacity for value creation and exponential long-term growth through scalability,” said Henry Ellenbogen, chief investment officer of Durable Capital Partners.
“Hyundai and Genesis are excited about this strategic investment and partnership with Tekion. Together, we are poised not only to embrace the future but chase it. Tekion’s cloud-native ARC solution will drive performance and agility into dealer operations and customer experience. Our shared efforts will provide even better data quality, integrity and digital experiences for our dealers and their customers,” said Manish Mehrotra, executive director of digital business planning and connected operations at Hyundai Motor North America.
Vijayan also expressed what the newest funding means for Tekion’s future.
“We are very thankful for the trust and incredible support from our dealer, OEM partners and investors who continue to believe in our mission and our capability to execute. We have experienced phenomenal market acceptance during the past year,” Vijayan said.
“This strong round of funding validates industry and investors’ belief in Tekion’s disruption and our exceptional team of innovators. Our investors know that we’re future-driven, and they want to be part of our remarkable story,” he went on to say.
It’s been an eventful week for DealerPolicy.
First, the insurance marketplace for automotive retail finalized a pair of industry alliances on Tuesday with F&I product provider JM&A Group and J.D. Power subsidiary Darwin Automotive.
Then on Thursday, the Emerging 8 honoree announced its $110 million Series C investment led by the growth equity business within Goldman Sachs Asset Management with participation from existing investors including 3L Capital and Hudson Structured Capital Management.
DealerPolicy said the new investment will be used to accelerate the growth of the company’s next-generation F&I offerings for both dealers and vehicle buyers, enabling automotive insurance to be seamlessly integrated online and at the point-of-sale.
According to a news release, Goldman Sachs’ Paul Pate will join the company’s board of directors.
“DealerPolicy has successfully pioneered the assimilation of personal insurance into the automotive retail process, in a unified and compliant manner,” said Paul Pate, who is a vice president in the growth equity business within Goldman Sachs Asset Management.
“We’re thrilled to support the DealerPolicy team as they continue to transform the purchase of cars and insurance,” Pate continued.
DealerPolicy said it will expand its operations to further develop and embed modern day insurance throughout the entire car shopping and ownership experience. To expedite the development and roll-out of its insurance distribution and fulfillment solutions with its major insurance carrier partners, the company intends to triple its product and engineering teams over the next 12 months by hiring new talent.
Additionally, DealerPolicy said the company will increase investments in strategic partnerships.
“We started the company with the vision of providing a more convenient, transparent, and connected car-buying experience,” DealerPolicy co-founder and chief executive officer Travis Fitzgerald said in the news release. “The funding comes at a time when we’re seeing mainstream adoption of automotive insurance into dealer sales and F&I processes driven by consumer desire for new dealership practices.
“This investment will allow us to advance our next-generation F&I offering, which provides consumers with competitive coverage options and tangible savings, as well as greatly increases dealer profitability,” Fitzgerald went on to say.
For more information about DealerPolicy, visit www.dealerpolicy.com.
Within days of the new chief executive officer describing the ripe opportunities for auto refinancing, iLendingDIRECT secured more funding to grow its operations and more.
On Friday, iLending announced that it has raised an additional $35 million through a transaction led by First Eagle Alternative Credit. This new capital follows iLending’s announcement in May that J.C. Flowers & Co. had taken a majority stake in the company.
“This new capital, on top of our recent investment from J.C. Flowers, is a strong signal of confidence in our proven business model, strong balance sheet and leadership team,” iLending CEO Tom Holgate said in the news release detailing the latest funding. “We have already begun building out both our management and sales teams, and we will remain vigilant for opportunities to grow the business.”
The company has substantially ramped up hiring to help support its growth, including hiring additional senior-level executives, expanding its Austin, Texas office, and developing near shore partnerships.
Executives from iLending also said they plan to open a new office location this fall.
The platform from iLending is available in all 50 states and Washington, D.C., and can handle the entire process, including finding the best rates, paying off the previous finance company and re-titling the vehicle.
Executives from iLending said its platform can save consumers an average of $144 a month on their payments through direct relationships with credit unions and other financing institutions that ensure consumers have access to the best available rates.
“We estimate that one in four auto loans are overpriced, meaning consumers are often paying more in interest than they should be based on their current credit profile. This presents a tremendous market opportunity for iLending,” Holgate said. “With our network of lenders, the company is well positioned to lead the market and help consumers refinance their loans and save money.”
