The mortgage robo-advisor has completed a substantial funding round, securing £3.8 million in investment.
Investors in this round include LSL Property Services plc, the parent company of the UK’s second largest mortgage network, and the FinTech pioneer GoCompare Group, which has increased its shareholding as part of this investment. Following the investment, the company is valued at £12 million, despite having launched its full proposition earlier this year.
This significant funding will enable continued investment in the development of mortgage robo-advice and artificial intelligence services. The investment round also included obtaining FCA approval and follows an earlier seed funding round of £2.5 million, which was completed in 2017. This comes after nearly a year of integration with GoCompare’s services.
Furthermore, the company has entered a strategic partnership agreement with LSL mortgage broker networks, which had around 2,298 mortgage advisers and arranged £21 billion in lending in 2017. The company offers a regulated mortgage robo-advice service, including a free 60-second mortgage-matcher and mortgage advice, enhanced by full integration with Experian credit files and live scorecards from mortgage lenders. This FCA-authorised service allows homebuyers to complete their mortgage application online in 15 minutes through a free, hybrid advice website. Its instant mortgage-matching is perfectly positioned to meet the FCA’s recent call to further support mortgage applicants, helping them identify and compare the mortgages they are qualified for.
The investment also sees the promotion of Jeremy Moll to managing director from chief commercial officer. Moll brings over 28 years of experience in the UK mortgage and insurance industries, having been part of the senior team that created CompareTheMarket.com and BeagleStreet.com.
John Ingram, the co-founder, remarked, “Our funding round, strategic partnerships, and continuing unique proposition put us in a strong position to truly revolutionise the UK mortgage market. Other digital mortgage platforms are constrained by their aim to organically grow their customer base and build broker support simultaneously, while our compelling fusion of ‘bricks and clicks’ will allow us to rapidly alleviate homebuyers of the uncertainty and stress of mortgage applications on a national scale. We have carefully chosen investors that not only bring funds but invaluable, symbiotic business models and expertise. As a result, we do not need to invest in costly customer acquisition or building a broker-base. This places us in a much stronger position than our peers as it allows us to invest the new capital in improving our technology – thereby improving customers’ choices. We are thrilled that the business will benefit from the new investment, and we are delighted that Jeremy has been promoted to managing director during this exciting time. The UK mortgage market is poised for digital revolution and we are here to drive it.”
Moll will also join the board, along with Ingram, who previously founded the company in 2016. Co-founder David Vertannes will join the board as well, along with investor directors Jon Round, Faisal Galaria, and Gaby Salem. The strategic partnership agreements with GoCompare and LSL build on the company’s existing commercial arrangements with conveyancer services, ensuring that essential partner services are seamlessly integrated into the user journey, supporting consumers in all aspects of their home move.
This funding and strategic alliances mark a significant milestone for the mortgage robo-advisor, positioning it to revolutionise the UK mortgage market with enhanced technology and strategic expertise.