Better.com received a $ 500 million investment Thursday from SoftBank Group, which increased its valuation from $ 4 billion to $ 6 billion.
The most recent capital injection, first reported by the Wall Street Journal, comes less than five months after Better completed its $ 200 million Series D fundraiser, led by venture capital firm L Catterton. Including today's deal, Better has raised nearly $ 1 billion since its inception in 2014. The Softbank investment is increasing in volume due to whispered speculation about an upcoming IPO of the originator and the servicer.
As part of the deal, SoftBank will buy its stake in the company from its current stakeholders, but its voting rights will be on hold on Better CEO Vishal Garg, according to WSJ. The Japanese conglomerate has not released any statements regarding its investment.
Better declined to comment on what the investment means for the company and what the plan is for the new capital. First launched to consumers in 2016, the company made a splash in the mortgage industry by targeting the tech-savvy younger generations and modeling its business after Uber.
Better, the $ 20 billion mortgage volume rose from 88,100 borrowers in 2020, up from $ 4 billion from 17,800 borrowers in 2019.
Made better to have National Mortgage News' best companies working for lists in both 2019 and 2020. The company differentiated itself from others in the market by eliminating commissions for its loan officers and instead opting for higher starting salaries to improve customer service.
"We grew nearly 500% year-over-year and an average of 10% to 15% month-over-month," Garg said in an interview at the Digital Mortgage Conference 2020. "We are now probably the second largest online lender to direct online Consumer leaves. We have a monthly volume of over 2.5 billion US dollars. "