Auto refinancing startup MotoRefi has raised another $10 million in funding, the company said Friday.
The funding round, led by Moderne Ventures, is the second for the Arlington startup in less than a year. The company raised $9.4 million in February 2020. Moderne Ventures Partner Liza Benson will join the company’s board.
MotoRefi, which seeks to make it easier for consumers to refinance their car loans, has seen rapid growth in 2020, according to the announcement. The company says that its platform is 20 times more efficient than any other refinancing offering.
MotoRefi was incubated in 2017 by local fintech venture firm QED Investors — which was founded in 2007 by Capital One Financial Corp. co-founder Nigel Morris and is staffed with a bunch of former Capital One execs. The refinancing startup previously completed a $4.7 million seed round in April 2019.
The company has also received backing from venture firms such as Accomplice, Link Ventures, Motley Fool Ventures, CMFG Ventures (part of CUNA Mutual Group), Gaingels, FireBolt Ventures, and others. The company estimates the auto refinance market totals about $1.2 trillion.
The company said it grew to more than 150 employees in 2020 and refinanced $250 million in auto loans in the same period. It also said it grew revenue by six times in 2020, but declined to state exactly what its revenue was or where it started from.
The addition of Moderne Ventures will add a “wealth” of consumer finance experience to MotoRefi, said MotoRefi CEO Kevin Bennett.
“Their partnership will enable us to accelerate our already strong growth trajectory, invest more deeply in our tech platform, grow the team and reach a growing segment of this large market," Bennett said in a statement. "It all adds up to more savings for consumers. That’s the mission.”
Bennett has been an executive at a number of local startups, including serving as co-founder and CEO of residential real estate transaction platform HomeZen, director of strategy and operations at LiveSafe and in roles at Opower and Personal Inc.
