A fintech that traces its roots back to Miami University has been sold to a Texas-based homebuying startup.
Digs, which was founded by two Miami alums and received an investment from the school's student-led VC fund, has been acquired by Austin-based OJO Labs, an artificial intelligence-powered tech platform that gives users personalized advice for buying and selling homes. Terms of the deal were not disclosed.
Founded in 2018, Chicago-based Digs helps users set and track savings goals as they plan to buy a home. The startup also provides resources and guidance after closing on a home to ensure users can responsibly pay a mortgage.
Two of its founders — CEO Patrick McLoughlin and CPO Chad Johnson — graduated from Miami in 2010. At the time of the company's launch, it received a $25,000 investment from RedHawk Ventures, one of the nation's few venture capital firms run by undergraduate students.
The deal marks the first exit from RedHawk Ventures' current $500,000 fund, according to a news release.
"Our mission is to help consumers reach their goal of homeownership and continue to build wealth," McLoughlin said in a statement. "Access to financial resources is limited and often generalized, leaving many aspiring and current homeowners without guidance. This is a massive problem and OJO Labs recognizes it."
OJO Labs, founded in 2015 by David Rubin and John Berkowitz, who will lead the combined companies, operates an artificial intelligence-powered tech The acquisition of Digs allows OJO Labs to enter the fintech space and build on its existing tech and services. Digs’ platform will be fully integrated into OJO Labs’ software in the coming months.
With Digs, OJO Labs will be able to help homebuyers and homeowners save for a down payment, secure mortgage lenders and plan renovations.
“Through our relationships with millions of consumers and their trusted providers, we know that financial readiness is one of the biggest sticking points. We also know that once people buy a home the financial challenges shift from readiness to management,” said Charles Myslinsky, OJO Labs’ chief product officer, in a statement. “The acquisition of Digs enables us to provide that much-needed, personalized guidance during the buying process and seamlessly transition the consumer to managing their home as an asset.”
OJO Labs has raised more than $134 million to date. It last raised a $62.5 million Series D round in June. Purchasing Digs is OJO Labs’ fourth acquisition. The company also bought Minnesota-based WolfNet Technologies, Austin-based Real Savvy and San Francisco-based Movoto. OJO Labs employs more than 350 people.
