Telecommunications and internet group SoftBank has provided $500m in funding for US-based online mortgage platform Better at a $6bn valuation, the Wall Street Journal has reported, citing people familiar with the matter.
Better offers a streamlined online mortgage and mortgage refinancing service through financial services partners that eschews charges and commission fees. It is preparing to float later this year, sources told WSJ.
The round boosted the company’s overall funding to $954m and increased its valuation 50% from November 2020 when it completed a $200m series D round that included insurance group Ping An and American Express Ventures, a subsidiary of payment services provider American Express.
The round was led by private equity firm L Catterton and also featured financial services provider Ally Financial, 9Yards Capital and Activant Capital.
American Express Ventures, Ping An’s Global Voyager Fund and Ally Financial had joined financial services firm Citi, real estate investment trust AGNC, Goldman Sachs, Activant Capital, Healthcare of Ontario Pension Plan, Pine Brook Partners and Kleiner Perkins in a $160m round the previous year at a $600m valuation.
Goldman Sachs’ Principal Strategic Investments, Pine Brook Partners and Kleiner Perkins were all existing investors in Better, while its earlier backers include KCK Group and IA Ventures.
