Mortgagetech innovator Better.com recently landed a $500 million investment from Japan-based Softbank, bringing the company’s total funding to over $900 million.
According to the Wall Street Journal, which broke the news, Softbank is buying shares from existing Better investors, a list which includes Goldman Sachs, Citigroup, and Kleiner Perkins.
With the new round, experts estimate Better’s valuation to be around $6 billion. This is a significant jump from the company’s most recent valuation, which sat at around $4 billion after Better closed a funding round in November of last year.
Better was founded with the goal of reengineering the mortgage process. The company streamlines mortgage originations by taking the entire process online. Better also offers Better Real Estate, which matches buyers with real estate agents; Better Settlement Services, which offers title insurance; and Better Cover, a home insurance marketplace.
The new investment comes at a time of significant growth for Better. Inspired by low interest rates, more consumers have been refinancing their properties. The Wall Street Journal reports that because of this increase in demand, Better lent out $25 billion in loans in 2020 and has extended $14 billion in loans the first quarter of this year.
Better saw $800 million in revenue last year and is expected to go public by the end of 2021. Founded in 2014, the company is headquartered in New York City. Vishal Garg is CEO.
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