Tomo, a fintech startup focused on the purchase mortgage sector, announced raising a $40 million Series A led by SVB Capital, according to a press release shared with FinLedger.
The fundraise more than doubles Tomo’s valuation to $640 million. It included participation from existing investors Ribbit Capital, NFX and Zigg Capital. New investors Telesoft Partners and proptech VC Parker89 also participated in the round, which brings Tomo’s total funding raised to date to $110 million. The company recently raised a $70 million seed round in June 2021.
Tomo says it will use the new capital to continue investing in its software development, data science and industry relations, and continue its push to launch its platform in all 50 states.
“We are maniacally focused on improving the purchase mortgage experience and have never been distracted by the temporary profits of the refi business. As homes continue to sell at a rapid clip, this focus has allowed us to sidestep the disorder that many lenders now find themselves in and to make huge leaps forward in serving homebuyers and partnering with real estate agents,” stated Greg Schwartz, Tomo’s chief executive officer and co-founder, in the release.
The company has expanded to seven states since it was founded in October 2020 by former Zillow executives Greg Schwartz and Carey Armstrong, and plans to be in half of all U.S. states by the end of the year. The release noted it now provides service in Michigan and Ohio, following recent news that Tomo had expanded to Florida, Colorado and Connecticut.
“In less than a year since they launched their online platform, the team at Tomo has proven they have the drive and the experience to transform the mortgage industry,” said Tilli Bannett, managing partner at SVB Capital.
“And that’s why SVB Capital led this round, after investing in the company’s seed round. We believe they are building a company that will reshape how people buy homes,” Bannett said.
Tomo added that in 2021, it closed 100% of its loans on time. It also said that it “delivers homebuyers great rates, charges no lender fees, provides fast and accurate underwriting and personal service seven days a week, 14 hours a day.”
FinLedger recently spoke with Tomo CEO Greg Schwartz about the company’s ongoing journey, expansion plans and its big goals for the future. You can find that Q&A interview here.
In other recent proptech news, Porch announced plans to buy a stake in Residential Warranty Services for $33 million. Startup HonestDoor also raised a $2.2 million seed round for its Canadian real estate valuation platform.