MotoRefi, a fintech startup focused on auto loan refinancing, announced Friday that it raised $8.6 million in its Series A funding round. The round was led by Link Ventures and Accomplice, with participation from Motley Fool Ventures, CMFG Ventures, Gaingels and others.
Based in Arlington, MotoRefi runs a platform that helps people refinance their auto loans. The company claims it can help people save an average of $100 a month by connecting them with lenders that it partners with, like credit unions and community banks. MotoRefi says it also takes care of the tedious back-end paperwork involved with refinancing, saving people trips to the DMV for things like re-titling.
“I couldn’t be more proud of the team and the mission-driven business we’re building,” CEO Kevin Bennett said in a press release. “Every day, we have the privilege of making a difference in consumers’ lives by improving their financial situations. We are grateful for the opportunity to partner with trusted lenders to make that happen.”
The raise adds to MotoRefi's seed round of $4.7 million seed round last March. The company said it plans to use its new infusion to grow its team and invest more in its technology platform, as well as add more partners and lenders.
The company also announced two new additions to its board: Rob Chaplinsky, managing director of Link Ventures, and Rachel Holt, Uber’s former head of new mobility. Holt recently left Uber to co-found Construct Capital, a new venture capital firm in D.C.
“I’m eager to bring my experience building Uber to MotoRefi’s Board,” Holt said in the announcement. “MotoRefi is transforming the world of auto financing. I’m proud to have been an early investor and am extremely excited about the team they’ve built.”
Mortgage refinancing may be a household concept, but MotoRefi says many Americans are unaware that refinancing an auto loan is also an option. According to the Federal Reserve Bank of St. Louis, Americans collectively owe $1.2 trillion in motor vehicle loans, nearly double the figure from a decade ago. The bank’s counterpart in New York reported this week that 7 million Americans are at least 90 days late on their auto loan payments.
