WEST PALM BEACH, Fla. & SAN FRANCISCO--(BUSINESS WIRE)--Finova Financial’s industry-first, cloud and mobile-based consumer auto title lending platform has raised $52.5 million in a combination of equity and a credit facility, one of the largest initial rounds in FinTech industry history, Finova announced today.
The funding round was led by Silicon Valley and international venture capital firms, prominent tech entrepreneurs and others, including: MHS Capital; Refactor Capital; Metamorphic Venture; 500 StartUps; leading fintech entrepreneurs Sam Hodges, Co-founder and Managing Director of Funding Circle; Jake Gibson, co-founder of NerdWallet; Al Hamra Group, a private company owned by the ruling family of Ras Al Khaimah, United Arab Emirates, and others. CoVenture provided the credit facility to support the enterprises’ growth.
The funding will be used by Finova to grow the industry’s first all-digital lending platform serving the auto title loan marketplace, with a social-impact emphasis, while delivering up to 70% lower cost to consumers.
“Finova Financial was launched to help consumers get critically-needed cash without the traditional barriers of high interest rates, inconvenient application processes and restrictive payment terms of the auto title lending industry,” said CEO Gregory Keough. “As a company committed to social impact, we see Finova Financial as being an advocate for consumer financial well-being through improved access to credit, better repayment terms and lower costs.”
Images and biographies for CEO founders Gregory Keough and Derek Acree can be found here.
An Industry Ripe for Transformation
With more than 28% of Americans now non- or under-banked, the need for secure, seamless and fair lending is more pronounced than ever. In the U.S. alone, 70 million underserved consumers pay $138 billion annually in fees and interest on alternative financial products, highly prohibitive for individuals and families experiencing short-term financial needs. Auto title loans often require payment within 30 days and charge more than 300% interest for loan terms. Finova’s online Car Equity Line of Credit (C-LOC) product and cloud based lending platform eliminates this model, providing the ability to establish or rebuild credit through transparent loan repayment terms.
“Greg and his team have done an incredible job of building the financial technology company of the future to cater to the very specific needs of the non- and under-banked in the U.S.,” said David Lee, Co-founder and Managing Partner, Refactor Capital and former managing partner of SV Angel. “Finova has earned great traction, and we look forward to working closely with them as they scale rapidly, giving consumers the opportunity to get back on track financially.”
The C-LOC loan solution is the first in a series of digital financial services products the enterprise is planning to offer in response to the needs of hundreds of millions global consumers outside the formal financial system.
About Finova Financial
Finova Financial is transforming the FinTech industry as a socially responsible online lender, providing fast, affordable loans based on the equity in your car. Founded in 2015 by a team of financial services, technology and payment experts, Finova delivers an online path to financial well-being and fair lending to the 70 million financially underserved Americans that spend $138 billion in fees and interest annually on alternative financial products. Finova’s Car Equity Line of Credit (C-LOC) costs 70% less than the current national average, provides around-the-clock access to capital, and a 12-month pathway back to financial health through its online and mobile platform. Finova Financial is backed by prominent Silicon Valley investors such as MHS Capital; Refactor Capital; CoVenture; Metamorphic Venture; 500 StartUps; leading fintech entrepreneurs Sam Hodges, Co-founder and Managing Director of Funding Circle; Jake Gibson, co-founder of NerdWallet; - Al Hamra Group, a private company owned by the ruling family of Ras Al Khaimah, United Arab Emirates and others.
For more information: www.finovafinancial.com
