Mortgage lender Better.com raises $160m from Ping An, Goldman, others

Photo: Reuters

US-based online mortgage lender Better.com, which has active operations in India, has closed its Series C funding round at $160 million, bringing the company’s total funding to $254 million to date, it said in a statement.

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.com claims to have grown 3x y-o-year and is currently funding $375 million in mortgages a month. The company is targeting to lend over $4 billion in 2019.

To continue its growth, Better.com is looking to hire an additional 400 people in sales and technology by the end of 2019, it said in a statement. In the past few months, the company has rapidly scaled its India workforce from 50 to 300, and moved to a new office in Gurugram.

“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.”

Better.com was created in 2016 after Garg lost a home to an all-cash buyer due to a slow and antiquated traditional mortgage. He used the money he had saved for the down payment to start the company, which has digitised the entire mortgage process to eliminate commissions, fees, unnecessary steps, and time-wasting branch appointments.

The platform helps its customers upload and eSign documents, get loan estimates in seconds and a pre-approval within minutes. It claims to have funded $1 billion of loans in Q2 of this year alone, more than in all of 2016 and 2017 combined.