US-based digital mortgage lending technology provider Roostify closed a $25m series B round yesterday featuring financial services firms JPMorgan Chase, United States Automobile Association (USAA) and Banco Santander.
Point72 Ventures, a venture capital arm of asset manager Point72, also took part along with technology investment platform Cota Capital and investment management firm Colchis Capital Management. Banco Santander invested through its Santander Innoventures unit.
Founded in 2012, Roostify has developed cloud-based software to help mortgage providers digitalise the loan application and processing process.
The software integrates with an external mortgage underwriting system run by mortgage financier Fannie Mae and a sales lead generation platform from enterprise software provider Salesforce.
The series B capital will fund a growth drive that that will take in product development and geographic expansion as Roostify looks to carve out a bigger presence in the enterprise industry.
The company recently introduced compatibility with lending comparison marketplace LendingTree, so that once LendingTree users find a loan they can continue the application online with Roostify-powered mortgage suppliers.
USAA led Roostify’s October 2015 series A round, with participation from Colchis Capital and two unspecified tier one banks. Roostify did not disclose the round’s size, but a securities filing two months earlier indicated it had raised $4.7m of a round with a $7.5m targeted close.
The company received another $500,000 in late 2015 through its participation in financial services group Wells Fargo’s startup accelerator. It had raised an undisclosed amount in a 2014 seed round led by mortgage bank American Capital Corporation that included unnamed angel investors.