Better.com, one of the fastest-growing homeownership platforms in the United States, recently closed its Series C fundraise at $160 million, bringing the company’s total funding to $254 million to date. Activant Capital, Ping An Global Voyager Fund, Ally Financial, Citi, AGNC, Healthcare of Ontario Pension Plan (HOOPP) and American Express Ventures joined existing shareholders Goldman Sachs, Pine Brook, and Kleiner Perkins in the round.
Better is a full-stack digital mortgage company, speeding and simplifying the process to purchase or refinance a home. From its offices in New York, San Francisco, Irvine, and Gurgaon, Better is using technology to change the way people finance their homes, for the better. It is a direct lender that provides a fast, transparent digital mortgage experience backed by superior customer support. The new investment round comes amid a period of tremendous growth for the fin-tech disruptor: Better.com has grown 3x year-over-year and is currently funding $375 million in mortgages a month in the US. This puts the company on track to lend over $4 billion in 2019.
Better.com was created in 2016 after its founder, Vishal Garg, lost a home to an all-cash buyer due to a slow and antiquated traditional mortgage process. His wife was pregnant with their second child at the time. He used the money he had saved for the down payment to start Better.com, which has digitized the entire mortgage process to eliminate commissions, fees, unnecessary steps, and time-wasting branch appointments. Customers are able to upload and eSign documents, get loan estimates in seconds and a pre-approval within minutes.
“Similar to how Amazon upended the retail industry, Better.com is digitally disrupting the $15 trillion mortgage industry through best-in-class technology, a commission-free business model and first-rate customer support,” said Vishal Garg, CEO and Founder of Better.com. “The capital we’ve raised will enable us to accelerate our investment in product development, grow our strategic partnerships, expand our team and scale our platform to continue making it easier for borrowers to get home financing.”
In the last 8 months, Better scaled its India employee strength from 50 to 300 and moved to a new office in Gurgaon to accommodate its rapid growth. Better’s India operations play a key role in business operations, risk management, fulfillment and analytics. To continue its growth, the fin-tech disruptor anticipates hiring an additional 150 people in India across various functions by the end of 2019 taking its team size to 450 in India.
“At Better.com, we are delivering a digital experience to our customers in a highly innovative and scalable way. Our numbers validate the customers conviction in our product, and we’re looking for people to help grow it and be a part of this journey”, said Bhavesh Sharma, Country Head, India, of Better.com.
Better.com took apart the home-financing ecosystem, step-by-step, using a technology-driven process and non-commissioned loan consultants. Since inception in 2016, Better.com has funded more than $4B in loans. Better.com was recognized as one of Fortune’s “Best Places to Work in NYC” 2019, ranked #964 on Inc.’s “5000 Fastest-Growing Companies” for 2019 and listed to Forbes’ FinTech 50 for 2018.