ARLINGTON, Va.–A fintech startup focused on the refinancing of auto loans said it has raised $8.6-million in a Series A funding round.
CMFG Ventures, the venture capital arm of CUNA Mutual, is among the investors, along with Motley Fool Ventures, Link Ventures and other firms.
MotoRefi, which operates the refinancing platform, claims it can help people save an average of $100 a month by connecting them with lenders that it partners with, such as credit unions and community banks. MotoRefi says it also takes care of the “tedious back-end paperwork involved with refinancing, saving people trips to the DMV for things like re-titling,” according to a statement.
“I couldn’t be more proud of the team and the mission-driven business we’re building,” CEO Kevin Bennett said in released statement. “Every day, we have the privilege of making a difference in consumers’ lives by improving their financial situations. We are grateful for the opportunity to partner with trusted lenders to make that happen.”
According to the company, the raise adds to MotoRefi’s seed round of $4.7 last March. The company said it plans to use its new infusion to grow its team and invest more in its technology platform, as well as add more partners and lenders.
Board Additions
The company also announced two new additions to its board: Rob Chaplinsky, managing director of Link Ventures, and Rachel Holt, Uber’s former head of new mobility.
According to MotoRefi, while mortgage refinancing may be a household concept, many Americans are unaware that refinancing an auto loan is also an option. The company pointed to data from the Federal Reserve Bank of St. Louis that shows Americans collectively owe approximately $1.2 trillion in vehicle loans, nearly double the figure of a decade ago.