Online mortgage marketplace Morty announced the close of a $25 million Series B financing round, pushing the total company valuation to $150 million.
Morty’s marketplace has processed more than $500 million in loans in the past 12 months, and saw revenue grow 800% year over year. The company is currently licensed in 36 states and Washington D.C., and intends to serve homebuyers nationwide by the end of 2021.
Morty acts as both a marketplace model for users to shop and compare mortgages in one place, as well a broker of loan applications. In the end, the company makes money by charging a fee off the principal of the loan — paid for by the lender.
To use Morty, borrowers need a FICO credit score of 620 or greater, and must show receipts for two years of viable income. The company requires a minimum down payment of 3% down for first-time homebuyers purchasing single-unit homes. For repeat buyers purchasing single-unit homes, the minimum down payment is 5%.
Cofounder Nora Apsel said Morty’s funding came entirely in the form of equity, and that the company has raised more than $38 million to date.
“The past twelve months have been a transformative time for the housing market,” Apsel said. “Our business model, and our philosophy, are about advocating for homebuyers. This investment will allow us to develop our product and pursue partnerships that align with that worldview.”
Specifically, Morty will put the funds toward investments in hiring, consumer marketing and product expansion, and will also explore business-to-business-to-consumer opportunities to embed mortgage technology into the “greater real estate ecosystem,” Apsel said.
Leading the latest funding round was March Capital, along with contributions from investors Thrive Capital, Lerer Hippeau, Prudence Holdings, FJ Labs and Metaprop.
“Morty’s proprietary mortgage automation platform and partnerships with leading lenders offer homebuyers a streamlined experience and highly competitive rates,” said Julia Klein of March Capital. “We have great confidence in this team and are excited to partner with them in facilitating home ownership, which will remain a cornerstone of the U.S. economy.”