Lendtech Roostify lands $25m to disrupt mortgage industry
Roostify raises $25m
Mortgage tech start-up Roostify raised $25 million, reports Julie Muhn at Finovate (FinTech Futures‘ sister company).
The Series B round comes from new investors Cota Capital, Point72 Ventures, and Santander Innoventures, and existing investors JP Morgan Chase, Colchis Capital, and a subsidiary of USAA.
The funding brings Roostify’s total raised to $33 million. The California-based company will use the funds to deepen its presence in the enterprise space, implement product enhancements, and expand into new markets.
Rajesh Bhat, co-founder and CEO of Roostify, says when the company launched four years ago, having a digital strategy was simply an ambition for lenders. Today, digitising the mortgage process has evolved into a business imperative. “Lenders now realise the value of providing consumers with a transparent, mobile, and seamless experience to obtain a loan without needless stress-inducing delays and red tape. 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,” Bhat states.
Originally launched as a way to create efficiencies by digitising the traditionally paper-bound processes, Roostify has evolved into an enterprise scale platform aimed to help US lenders accelerate, simplify, and reduce costs associated with the mortgage origination process.
Leveraging its cloud-based API solution, lenders help clients with the entire mortgage process – from searching for the loan to close – via a fully-digital, branded experience. Bobby Yazdani, Cota Capital’s managing partner, said his team was “immensely impressed with what Roostify has accomplished in the last four years”. He adds: “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.”
Roostify has integrations with TurboTax and Equifax. It has also teamed up with Chase to power the bank’s self-service mortgage application process. Last month, Roostify launched an integration with LendingTree that blends LendingTree’s aggregation technology with Roostify’s mortgage digitisation.
