Money Management
Recreational Vehicle Financing FinTech Octane Raises $50 Million
A FinTech that helps consumers get financing for a variety of major recreational purchases has raised a fresh round of funds.
About the round:
This week, Octane announced that it raised $50 million in new equity capital. The Series E was led by Valar Ventures with participation from Upper90. Notably, both firms are existing investors. To date, the company has now raised a total of $242 million, including a $52 million Series D back in 2021.
With the new funds, Octane intends to expand into new markets as well as “supercharge” growth in existing markets. Additionally, the company says the money will help fuel product innovation.
About Octane:
Octane is a platform that offers financing for motorcycles, ATVs, mowers, and much more. Buyers can apply for financing on the Octane site and get instant prequalification decisions with a soft pull of their credit. Then, they can view payment terms and options based on the make and model of the vehicle they’re looking for. To get started, they’ll just need to enter some basic info such as their name, address, Social Security number, employment status, and income. They’ll also need to state whether they’re looking to buy within the next week or still shopping.
Since launching in 2014, Octane has originated more than $4 billion in loans. The company also maintains partnerships with more than 30 original equipment manufacturers and more than 4,000 dealers.
What they’re saying:
Announcing the Series E, Octane CEO and co-founder Jason Guss stated, “We’re honored to strengthen our relationship with Valar and Upper90 as we bring speed and ease to the financing experience.” He added, “Octane’s digital tools and broad credit coverage have propelled us to become a leader in our initial market of powersports and gain significant traction in adjacent markets, like RVs. This new funding will help us build on this momentum and expand into new markets as we connect even more people with their passions.”
My thoughts:
In my view, Octane is an interesting case where the appeal is more about the niche than anything. Vehicle financing isn’t exactly breaking the mold, but the company has seemingly found strong success going after a specific segment far away from traditional vehicles. Honestly, while $50 million isn’t huge by late-stage standards, I’m still impressed by how much Octane has managed to raise. It’s also a good sign that the FinTech’s current investors are willing to put more into the company. For those reasons, I expect that the platform will continue to grow and expand in the months ahead.
Author
Other Articles by Kyle Burbank
Credit Card News
FinTech News
FinTech Brokerage App Stash Raises $146 Million in Latest Round
A popular brokerage app has revealed its latest "mega-round." About the Round: This week, Stash announced that it's raised a new round of $146 million. The Series H was led by Goodwater Capital with returning investors Union Square Ventures, StepStone Group, Serengeti, and the University of Illinois Foundation also participating alongside funds and accounts advised by T. Rowe Price Investment Management, Inc. To date, Stash has now raised $666 million in funding,...
Money Management Product Reviews
