Five months after investors poured $ 10 million into a fintech startup to help turbocharge their auto refinancing business, Motorefi has raised another $ 45 million under the leadership of Goldman Sachs.
The startup developed an auto refinancing platform that handles the entire lending process, including finding the best rates, paying the old lender and re-title the vehicle. MotoRefi states that using its platform saves consumers an average of $ 100 per month on their car payments, a goal partially achieved because it works directly with lending institutions. The company’s refinancing equipment saw steady growth until the COVID-19 epidemic hit high gear. CEO Kevin Bennett said that MotoRefi is on track to issue a $ 1 billion loan by the end of the year, more than five times the same period last year.
Bennett said that the shorter time period between rounds was driven by investor confidence in its metrics, which are growing at a faster pace, and basic economics around the business.
Bennett said, “We were obviously not planning to increase yet, but they (Goldman Sachs) were comfortable with the relationship we had and the track record and the success of the business, to push this round and that To move the calendar up. “
MotoRefi’s platform is available in 46 states and Washington DC and is planned to go live in all 50 by the end of the year. The startup has accelerated hiring to support that growth. By the first quarter of 2021, it had more than doubled its workforce to 187 compared to the same period last year. Its workforce now reaches 250 employees. The company has hired several senior level executives, opened a new headquarters and partnered with Sophie. Goldman Sacks VP of Venture Capital and Growth Equity Jade Mandel have joined the board of MotoRefi.
And Bennett sees plenty of room to grow as consumers find ways to rebalance their debts. The auto refinancing market in the United States is worth $ 40 billion. However, overall auto loan debt is $ 1.3 trillion. With 40 million auto loans every year, MotoRefi is promised a steady flow of potential new customers.
The latest injection of capital, including investor IA Capital as well as returning backers Modern Ventures, Accomplice, Link Ventures, Motley Fool Ventures and CMFG Ventures, was used to build its products and services and hire more people Will go. MotoRefi has raised $ 60 million since its inception in 2016.
Bennett believes the company is now in a self-sufficient position.
He said, “Thankfully we have overtaken the world where we are raising capital and then raising more capital when we are out of capital.” “I think we have a great sustainable business and so we, in some sense, the runway is infinite, and we are building a great profitable business. This is not to say that we will never rise again, but it’s strategic ideas. Will be based on, as out of necessity. “