In another indication that the digital mortgage revolution is moving full steam ahead, one of the leading digital mortgage platform providers has secured a substantial new round of funding to power its growth.
Roostify, which powers the digital mortgage process for lenders like Guild Mortgage and will soon serve as the backbone of JPMorgan Chase’s digital mortgage process, announced Thursday that it raised $25 million in its Series B funding round.
According to Roostify, investors taking part in the funding round include Cota Capital, Point72 Ventures, and Santander Innoventures, the venture capital arm of Banco Santander.
JPMorgan Chase, which previously invested in the company, also took part in this funding round, along with other previous investors Colchis Capital and a subsidiary of USAA.
Roostify said that the money will be used to “power the company’s ambitious growth goals, including a deeper presence in the enterprise space, rich product enhancements, and expansion into new markets.”
Roostify was founded in 2014, and has seen significant growth in the last few years. Beyond its agreements with Chase and Guild Mortgage, Roostify also recently inked a deal to bring digital mortgages to LendingTree and all its participating lenders, if they should so choose.
Now, the company plans to “drive market expansion” thanks to this new injection of capital.
“Four years ago, Roostify was a pioneer in moving the consumer home lending experience online. We sought to deliver an offering that we would experience ourselves for our own home purchases,” Rajesh Bhat, co-founder and CEO of Roostify, said in a release.
“Since then, a digital strategy has evolved from an ambition to a business imperative for our customers. Lenders now realize the value of providing consumers with a transparent, mobile, and seamless experience to obtain a loan without needless stress-inducing delays and red tape,” Bhat added. “We have developed a solution that allows lenders of all sizes to give their teams a tool to digitally engage with clients and to bring the loan origination experience to the consumer.”
Bobby Yazdani, Cota Capital’s managing partner, said that the company was “immensely impressed” with Roostify’s growth over the last several years.
“Roostify has evolved not only their own offering and product focus, but the market as a whole, helping the lending industry transform itself for the digital age,” Yazdani said. “We’re pleased to be a part of that transformation, and look forward to seeing Roostify and the industry continue to move forward.”