London-based Santander InnoVentures recently led an expansion investment round for San Francisco-headquartered Roostify, an online mortgage lending platform. The size of the investment made has not been shared publicly.
Established in 2012, Roostify provides an integrated platform that connects customers and lenders in order to conduct the process of obtaining a mortgage over the internet. The company says that handling mortgage applications online eliminates a lot of paperwork, which speeds up the process and reduces costs.
Roostify uses a cloud-based, API-enabled platform that allows lenders to provide clients a usef-friendly and branded experience from searching for the best deal to finalizing a home loan.
Roostify’s management recently signed a deal with HSBC Bank USA and notes that monthly loan volume has increased more than twofold in the past year to almost $20 billion per month.
This funding round marks Santander InnoVentures’ second investment in Roostify. In 2018, the Santander Group’s corporate VC fund, which focuses on early-stage Fintech investments, took part in Roostify’s $25 million Series B round. The funds from the latest round will be used to support product development and the company’s move into the UK and larger European markets.
Manuel Silva Martínez, head of investments at Santander InnoVentures, who has joined Roostify’s board of directors, stated:
“The company has seen impressive growth since we originally invested in them last year, and the European mortgage lending market is ripe for the type of machine learning tools that Roostify offers.”
Rajesh Bhat, co-founder and CEO of Roostify, noted:
“Digital transformation is a key strategic priority for banks worldwide, and industry-leading lenders are focused on delivering the best customer experience while managing costs. The Roostify lending platform enables lenders to realize up to 300% growth in loan applications and a significant reduction origination costs. The future is frictionless, everyone benefits when you optimize the lending process.”