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Fintech

Roostify snags $32 million in Series C funding round

Company intends to use latest funds to boost AI and grow staff by 50%

Digital mortgage platform Roostify announced on Tuesday it has raised another $32 million in a Series C funding round amid a booming real estate market, bringing the tech startup’s total capital to $65 million.

Roostify, which powers the digital mortgage platforms of JPMorgan ChaseTD BankGuild MortgageHSBC Bank USA and more, allows different lending parties to bring in data and information from online sources that then tailors the homebuying process. They also offer a home equity platform for home equity loan applications and HELOCs under the same umbrella.

Roostify’s latest funding round was led by Ten Coves Capital with returning investors Cota Capital, Mouro CapitalColchis CapitalPoint72 Ventures, and JP Morgan Chase.

In its release, Roostify said it intends to use the latest investor backing to advance its current AI technology and grow its staff by 50%.

Dan Kittredge, managing partner at Ten Coves Capital, said Roostify is well-positioned to accelerate the digitization of home lending infrastructure.

“The opportunity to re-design the future of home lending through technology cannot be overstated, as the mortgage lending industry has been relatively slow to embrace digital technologies,” said Kittredge

According to the San Francisco-based startup, the company boasts about 200 lending institutions on its platform, and handles $50 billion in loan volume every month.

“Having easy access to meaningful digital tools is key to helping lenders thrive in a digital-first world,” said Roostify CEO Rajesh Bhat. “That’s why we are hyper-focused on perfecting and digitalizing the entire home buying journey from beginning to close.”

“With this capital infusion, we will accelerate our vision of simplifying home lending without compromising on quality and time-to-market,” Bhat said.

In 2020, Roostify said it scaled to manage a 250% increase in overall platform volume, and it’s not the only startup to have a bang-up year after nearly $4 trillion in originations flooded the market.

Work-from-home lifestyles and low mortgage rates lit a fire under proptech amid a global pandemic with both Figure Lending and SimpleNexus landing over $100 million in January funding rounds. And software and platform developers Qualia and Blend both achieved unicorn status by the end of the year.

“I think COVID has really emphasized the importance of solutions like us to our customers,” Bhat said in an interview with Crunchbase News. “What we saw were two things: with existing users in our platform, an increase in digital engagement… And two, for existing customers to add more users as well. Many loan officers who may not have in the past sought to engage with customers digitally.

Roostify’s latest C funding round arrived almost two years after a $25 million Series B round in 2018 led by JP Morgan chase.

At the time, Roostify said it intended to use the funding to “power the company’s ambitious growth goals, including a deeper presence in the enterprise space, rich product enhancements, and expansion into new markets.”

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