FinTech MotoRefi Raises $45 Million
SUV on the side of a road

FinTech MotoRefi Raises $45 Million

As more Americans look to save money on their auto loans, one FinTech is seeing significant growth — and attracting investors. Last week, MotoRefi revealed that it had raised $45 million. The Series B was led by bank Goldman Sachs with additional participation from Motley Fool Ventures, Moderne Ventures, Link Ventures, IA Capital Group, CMFG Ventures, and Accomplice. This comes just four months after MotoRefi’s $10 million Series A, which was led by Moderne. To date, the company has raised a total of $69.1 million.

Just as their name implies, MotoRefi offers modern tools for refinancing auto loans. As TechCrunch notes, the startup’s platform manages the entire process — from finding the best rates to paying off the previous loan and retitling the vehicle. In turn, customers reportedly save an average of $100 a month on their car loans after using the service. Currently, MotoRefi operates in 46 states as well as in the District of Columbia but the company expects to expand to all 50 states by the end of the year. Also by the end of the year, the startup expects to have issued $1 billion in loans.

In addition to finding success on its own, MotoRefi also recently announced a partnership with another FinTech. Last month, SoFi began working with MotoRefi to offer loan options on its Lantern portal. At the time, MotoRefi CEO Kevin Bennett said of the partnership, “MotoRefi and SoFi share a similar goal of helping average consumers improve their financial lives. At a time when a lot of Americans are making every dollar count, we can think of no better partners in launching our API than a FinTech powerhouse like SoFi.”

As for the investment round, Bennett told TechCrunch that the timing was unexpected, stated, “We candidly weren’t planning on raising yet, but they (Goldman Sachs) were comfortable given the relationship we have built and the track record and success of the business, to preempt the round and move that calendar up.” Looking to the future, Bennet said, “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. That’s not to say that we won’t ever raise again, but it will be based on strategic considerations, as opposed to out of necessity.”

Between the impressive growth, their partnership with SoFi, and the fact that they’ve raised two rounds of funding in less than six months, MotoRefi is clearly having a moment. That’s not only good news for the startup but is potentially also good for consumers hoping to save money on their car loans. As demand for refinancing increases, expect MotoRefi to continue its upward trajectory as well.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...