Despite a significantly smaller funding round than two years ago, Habito is now looking to reach profitability within the next 12 months.
Following a £35m Series C raise two years ago, digital mortgage broker Habito has closed its latest funding round at £5m.
The round was led by a number of existing investors, including Augmentum Fintech, SBI Investment and Volution.
This latest raise follows speculation last month that the prominent homebuying startup would be securing “rescue funding” at a significantly reduced valuation.
It also follows news earlier this year that the company would be cutting the majority of its broker team.
Before this round, the company had previously raised at least £60m in investment since launching in 2016, including its previous Series C round.
The funding follows the collapse of discussions about a merger between Habito and privately owned London & Country Mortgages.
According to the company, despite market conditions that have “proven challenging for the technology – and specifically fintech – sector”, the fresh investment will power the next phase of its growth.
It said it will be refocusing on its “core services”, including mortgage brokerage and Plus, a homebuying service that combines surveying, conveyancing and mortgages.
According to Habito, the “strategic refocusing” will allow it to continue “marrying its proprietary technology platform with its highly-acclaimed customer advice team” as it looks to achieve profitability within the next 12 months.
“Over the past six years, we’ve been on a mission to make mortgages easier with our unmatched technology and best-in-class mortgage advisors and case managers,” Habito founder and CEO Daniel Hegarty said.
“With the cost of living biting, energy prices sky-rocketing and interest rates at a historic high it’s more important than ever for mortgage-holders and would-be homeowners to have access to the very best mortgage and home-buying advice.”
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