It’s been a long two years, but it looks like digital homeownership company, Better.com, is progressing in its plans to become a publicly-listed company.
The move to merge with Aurora Acquisition Corp., a special purpose acquisition company, inched closer, according to a July 2022 filing with the Securities and Exchange Commission. The transaction, once finalized, will infuse the combined entity with $750 million in new capital.
Vishal Garg, Better’s CEO and founder, noted in the July 2022 filing the importance of this transition, stating, "This transaction will enable us to continue providing a better outcome for folks in search of the security and opportunity that homeownership brings."
Funds from the transaction will be allocated towards the development of products and features aimed at enhancing the homeownership financing experience.
A Better spokesman declined to comment for this story.
Looking ahead, Better intends to enhance its technology, broaden its product lines, and improve its offerings to remain competitive. The company made its mark with technology to quickly process refinancing applications but is broadening its focus following the collapse of that segment.
Garg noted the evolution of Better's proprietary mortgage automation platform, Tinman. Introduced in Q4 2021, the Better Cash Offer program, powered by Tinman, transforms customers into cash buyers within days, supporting them in securing home purchases.
The deal to go public will also see Harit Talwar, previously chairman of consumer business at Goldman Sachs, joins Better as chairman of the board. Talwar's background in consumer financial businesses and experience building public companies is expected to bolster Better's strategic and cultural development.
In that same 2022 filing, Aurora Acquisition Corp.'s CEO Arnaud Massenet and Chief Information Officer Prabhu Narasimhan express their confidence in Better's business model, stating, "Better’s commitment to continually improving operations and financial discipline gives us confidence in their business.”
The two companies entered into an agreement to merge in May 2021, which would have a post-equity value of $7.7 billion following the closure of the deal. However, the deadline had previously been extended, citing lack of time to complete the transaction.
In 2021, Better experienced an explosive expansion, ballooning its staff size by almost 400% from around 2,000 in 2019 to 10,000 employees. Over the same period, origination volume skyrocketed from $4.9 billion to an impressive $58 billion. The firm successfully secured $905 million in numerous funding rounds, with SoftBank extending a substantial loan of $750 million in 2021.
Garg came under public scrutiny in December 2021 when he dismissed 900 employees via a Zoom call. Following this incident, the lender initiated at least three rounds of layoffs in 2022, affecting staff in both India and the United States.
Editor's note: An earlier version of this article incorrectly stated the date of the 2022 filing.
