Lendtech Roostify raises $25m in Series B round

By Emily Nicolle on 16th February 2018

P2P/Marketplace Lending

The mortgage tech firm has the backing of some senior players, as it looks to fund expansion into new markets.

Lendtech Roostify raises $25m in Series B round

Digital mortgage brokering service Roostify has raised $25m in a Series B fundraising round led by Santander Innoventures, Cota Capital and Point72 Ventures. Previous investors such as JPMorgan Chase, Colchis Capital and an unnamed subsidiary of USAA also provided additional backing.

Launched in 2014, Roostify operates a digitised brokering platform used by US lenders to accelerate, simplify and reduce costs surrounding the origination process for mortgage loans. The San Fransisco-based platform recently integrated with marketplace lender LendingTree to power their online mortgage lending process, which helps consumers find, apply for and close a mortgage with the best lender for their situation.

Roostify intends to use the Series B financing to fund the platform’s expansion into new markets, as well as product development and “a deeper presence in the enterprise space”. This latest round brings the lender’s total funds raised to $33m.

Rajesh Bhat, co-founder and CEO of Roostify, commented: “Four years ago, Roostify was a pioneer in moving the consumer home lending experience online. We sought to deliver an offering that we would experience ourselves for our own home purchases. Since then, a digital strategy has evolved from an ambition to a business imperative for our customers.

“Lenders now realize the value of providing consumers with a transparent, mobile, and seamless experience to obtain a loan without needless stress-inducing delays and red tape. We have developed a solution that allows lenders of all sizes to give their teams a tool to digitally engage with clients and to bring the loan origination experience to the consumer.”

Bobby Yazdani, Cota Capital’s Managing Partner, added that he Is “immensely impressed” with the achievements of Roostify since its founding four years ago. He added: “We’re pleased to be a part of that transformation, and look forward to seeing Roostify and the industry continue to move forward.”