FinTech

Digital lending platform Roostify plots expansion with new investment from Santander

Expanding into U.K. and Europe

Roostify, which powers the digital mortgage platforms of JPMorgan ChaseTD BankGuild Mortgage, HSBC Bank USA and more, is plotting an expansion in the U.S. and internationally thanks to a new injection of funding from Santander Group and others.

Roostify and Santander announced Tuesday that Santander InnoVentures, Santander Group’s fintech venture capital fund, led an expansion funding round for the digital lending platform provider.

Also participating in the funding round were existing investors JPMorgan Chase and Colchis Capital, among others.

The companies did not disclose how much money the company raised in this funding, nor how much Santander’s venture capital fund is investing, but the investment is the Santander’s second in Roostify.

In early 2018, Santander InnoVentures took part in Roostify’s $25 million Series B funding round. And now, the company is investing again, which should help Roostify continue expanding.

Roostify, which was founded in 2012, has grown steadily over the last several years, including becoming the digital mortgage platform provider for the banks mentioned above.

According to the company, its monthly loan volume has more than doubled over the last 12 months. The company is now seeing nearly $20 billion a month in mortgages processed via its platform.

Roostify states that the new funding from Santander will support the company’s continued development of its mortgage platform, as well as “additional consumer lending products.”

Beyond that, Roostify will also be expanding its geographic footprint to include the U.K. and Europe.

As for Santander, the company’s VC fund is supporting Roostify’s expansion with an investment and a global agreement that could see Roostify powering Santander’s expansions into “new core markets.”

According to the companies, since InnoVentures’ initial investment in Roostify, the companies have been “exploring ways of working together, commercially and beyond.”

The investment also could conceivably be setting the stage for Roostify’s Series C funding round at some point in the near future.

“We’re excited to continue supporting Roostify in their next stage of growth as they forge ahead with their multinational and product expansion strategy,” Manuel Silva Martínez, partner and head of investments at Santander InnoVentures, said in a statement. “The company has seen impressive growth since we originally invested in them last year, and the European mortgage lending market is ripe for the type of machine learning tools that Roostify offers.”

Martínez will be also be joining Roostify’s board of directors as an observer.

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