Morty catapults to $ 150 million valuation with latest Series B raise

Morty, an online mortgage marketplace, today announced that it has closed a $ 25 million Series B financing round with all of the financing in equity. That gives the company a valuation of $ 150 million, Morty co-founder Nora Apsel said. Previously, the company had a valuation of between $ 10 million and $ 50 million, according to Crunchbase. The five-year-old company has raised $ 38.4 million to date.

“It reflects both our growth and the opportunities people see in the market,” Apsel said. “We are really well positioned to continue to grow and deliver a better customer experience over the long term. ”

March Capital was the main investor in the last round. Existing investors Thrive Capital, Lerer Hippeau, Prudence Holdings, FJ Labs and Metaprop also contributed to the round, as well as the addition of Rethink Impact, a venture capital fund that focuses on investing in women leaders at the head of technology companies.

Morty acts as both a market model for users to shop and compare mortgages in one place, as well as a loan application broker. They earn money by taking a charge on the loan principal, paid by the lender.

Apsel refers to Morty’s “tech-first” approach as the main factor behind why they are able to offer low prices to consumers. “We are able to get the best rate for one person at any given time in our entire market. We have been able to significantly reduce the cost of producing loans by leveraging technology in various parts of the mortgage process and are able to pass these savings on to the buyer.

She cites their automated loan option as one of the technological ways to help consumers lower their costs. This interactive feature uses a client’s basic financial information to provide “extremely accurate quotes,” says Apsel. After the consumer enters their information, they can create different scenarios, such as changing conditions, down payment amount, etc. “Usually, with a traditional lender, it’s a lot of back and forth with one person. At Morty, a customer can do it on their own in a matter of minutes.

Apsel adds that they provide a Closing date promise which she explains as “if we miss your closing date for specific reasons, we’ll give you all the money we make on this loan.”

According to data released by the company, in the past 12 months, Morty has taken more than half a billion dollars in loans with revenue growth increasing 800% year over year. Their average loan size is $ 325,000, with about half of their clients being first-time buyers.

Operating in 36 states and Washington DC, they aim to grow nationwide by the end of 2021. They are currently only processing purchase requisitions, with plans on their roadmap to roll out refinancings. .

As homeownership becomes more expensive, with prices rising rapidly in response to low inventory and the likely rise in interest rates by the end of the year, platforms such as Morty may providing a way for more buyers to find a home purchase can be close at hand.

Apsel concludes by saying, “As interest rates fluctuate that is when it is most important to both shop and compare for your mortgage and make sure you are working with someone who is truly your lawyer. . We think we’re very well positioned, yes, to capitalize on the bright side. But also to be the solution of confidence in the difficult moments if they arise.

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