Mortgagetech startup Roostify raised $25 million to further its quest to improve the mortgage industry today. The Series B round comes from new investors Cota Capital, Point72 Ventures, and Santander Innoventures, and existing investors JPMorgan Chase, Colchis Capital, and a subsidiary of USAA.
The funding brings Roostify’s total raised to $33 million. The California-based company will use the funds to deepen its presence in the enterprise space, implement product enhancements, and expand into new markets.
Rajesh Bhat, co-founder and CEO of Roostify said that when the company launched four years ago, having a digital strategy was simply an ambition for lenders. Today, digitizing the mortgage process has evolved into a business imperative. “Lenders now realize the value of providing consumers with a transparent, mobile, and seamless experience to obtain a loan without needless stress-inducing delays and red tape. We have developed a solution that allows lenders of all sizes to give their teams a tool to digitally engage with clients and to bring the loan origination experience to the consumer,” Bhat added.
Originally launched as a way to create efficiencies by digitizing the traditionally paper-bound processes, Roostify has evolved into an enterprise scale platform aimed to help U.S. lenders accelerate, simplify, and reduce costs associated with the mortgage origination process. Leveraging its cloud-based API solution, lenders help clients with the entire mortgage process– from searching for the loan to close– via a fully-digital, branded experience. Bobby Yazdani, Cota Capital’s Managing Partner, said his team was “immensely impressed with what Roostify has accomplished in the last four years,” He added,“Roostify has evolved not only their own offering and product focus, but the market as a whole, helping the lending industry transform itself for the digital age.”
Roostify presented at FinovateSpring 2016 where the company demoed account aggregation capabilities for asset verification, as well as integrations with TurboTax and Equifax. Since then, the company has teamed up with Chase to power the bank’s self-service mortgage application process. Last month, Roostify launched an integration with LendingTree that blends LendingTree’s aggregation technology with Roostify’s mortgage digitization. For more on the mortgagetech sector, check out our industry overview.