Finova Financial, an auto title lending platform, has raised $52.5 million in a combination of equity and a credit facility, marking one of the largest initial rounds in fintech industry history.
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 company intends to use the funding 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.”
Founded in 2015, Finova Financial is the provider of car title secured line of credit and provides fast affordable loans. The company says that its Car Equity Line of Credit (C-LOC) costs 70% less than the current national average, provides instant access to capital, and a 12-month pathway back to financial health, online, mobile, anywhere, 24/7.
Finova clients benefit from the ability to complete the loan process online, instant approval decisions and same day cash funding. Payments can be made from the convenience of any computer or mobile device and at 32,000 US retail locations. Successful payment history provides declining rates, the opportunity to establish and build credit, along with access to additional funds on demand.
