According to a news statement, Goldman Sachs led a Series B investment round in which $45 million was raised by the vehicle loan startup MotoRefi.
Consumers can use the portal to discover rates, repay past lenders, and retitle vehicles. motorefi 45m goldman sachskorosectechcrunch. The company says that by working directly with credit unions and other lending institutions, its network saves customers $100 per month on average in car payments.
According to Kevin Bennett, CEO of MotoRefi, the company would use the funds to expand its product line, recruit additional employees, and eventually become self-sufficient.
Bennett stated in a discussion with TechCrunch that “hopefully, we went further than the paradigm where we are getting finance and then obtaining more capital as we run out of capital.” “We are developing a fantastic lucrative company, and I believe we have a tremendous viable model with an endless runway.
As per TechCrunch, MotoRefi lately expanded its Arlington, Virginia, headquarters, collaborated with SoFi, and added senior-level employees.
IA Capital and recurring backers Moderne Ventures, Accomplice, Link Ventures, Motley Fool Ventures, and CMFG Ventures contributed money to the venture as well. Due to the funding, Jade Mandel, vice president of Goldman Sachs Asset Management’s growth equity business, has joined MotoRefi’s board of directors.
Earlier funding efforts for MotoRefi totaled $4.7 million in a pilot level led by Accomplice and $19.4 million in two Series A investments, the most recent of which was in January 2021 and was headed by Accomplice, Link Ventures, and Moderne Ventures.
In contrast to the $250 million it managed in 2020, Bennett told TechCrunch that the site is expected to offer $1 billion in loans by the end of the year. The network is now accessible in 46 states and Washington, DC, but by the end of the year, it will be accessible in all 50 states.
With a total vehicle loan debt of $1.3 trillion, the US market for auto refinances has reached $40 billion. The company’s extraordinary growth over the previous year, with a 7-fold revenue boost and a 5-fold gain in loan quantity from the first quarter of 2020 to the first quarter of 2021, reflects its momentum and rising direction.