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Roostify, a home lending technology provider, secured $32 million in its Series C funding round. The company has now raised a total of $65 million in capital and will use its funds to leverage innovative artificial intelligence, to help simplify the homebuying experience and grow its staff by 50%.
According to a press release, the round was led by Ten Coves Capital, whose expertise in technology and financial services will support Roostify in developing a long-term strategy for home lending technology beyond origination. Ten Coves was joined by principals at Stone Point Capital. Returning investors include Cota Capital, Mouro Capital, Colchis Capital, Point72 Ventures, and JPMorgan Chase.
"The opportunity to re-design the future of home lending through technology cannot be overstated, as the mortgage lending industry has been relatively slow to embrace digital technologies," said Dan Kittredge, managing partner at Ten Coves Capital.
As the COVID-19 pandemic highlighted the need for critical digital transformation in the home lending industry, companies have been scrambling to develop digital tools to help create efficiencies in the industry. While the record-breaking origination volume was welcomed by the industry, it also has strained outdated mortgage lending processes, according to Roostify. In 2020, Roostify scaled to manage a 250 percent increase in overall platform volume. According to the press release, the company supports more than 200 lending institutions and handles roughly $50B in loan volume monthly.
"Having easy access to meaningful digital tools is key to helping lenders thrive in a digital-first world," said Roostify CEO Rajesh Bhat. "That's why we are hyper-focused on perfecting and digitalizing the entire home buying journey from beginning to close."
Click here to learn more about Roostify's latest round of funding.