AutoFi raises $85 million to provide online auto finance for buyers and dealers; now valued at $700 million
AutoFi, a San Francisco-based tech startup that provides dealership systems to support online vehicle sales and financing, has raised $85 million to expand its operations. The round, which values the company at nearly $700 million, was backed by Santander Holdings USA, Inc., SVB Financial Group, the parent of Silicon Valley Bank, and Crosslink Capital.
AutoFi, the leading commerce platform for digital automotive sales and financing, announced today it has closed $85 million in funding valuing the company at nearly $700 million. The ongoing pandemic has spurred increasing interest in online vehicle financing and purchases from U.S. auto dealers as consumers go online to shop for new cars.
Since last year, its digital commerce platform has processed more than one million vehicle financing requests in 2021, supporting more than $3 billion in retail sales, the company said. AutoFi’s previous investors include BMW iVentures and Ford Motor Credit (F.N), according to data from PitchBook.
Founded in 2015 by CEO Kevin Singerman, Mandar Gokhale, and Jonathan Palan, AutoFi is a commerce platform delivering point of sale solutions for financing a vehicle online. Singerman said the startup will use the latest funding proceeds to expand its platform to banks, as well as captive and specialty finance companies.
“We are humbled to have some of the world’s leading financial institutions share our vision to bring innovation to automotive commerce,” said Kevin Singerman, CEO and co-founder of AutoFi. “Finance is a critical part of how people buy and sell vehicles and continues to be the main source of friction in the automotive retail process. Finance must be more integrated into digital experiences. With this additional capital, we will double down on our mission to bring joy and trust in this market by enabling banks, captives, and specialty finance companies to better support the massive transition of offline to online commerce.”
The company plans to accelerate its investment in its engineering and customer-facing teams. With four consecutive years of 100% revenue growth, AutoFi more than doubled the size of its staff in 2021 to 220 employees. AutoFi’s platform processed more than one million automotive financing requests that resulted in more than $3 billion in vehicle sales in 2021.
The investment will further innovation in transformative retailing experiences like AutoFi’s new “RealPayments” offering. This cloud-based pricing platform allows auto finance companies to extend their decisioning and pricing capabilities into point-of-search shopping experiences. In seconds, consumers are pre-qualified for financing and see their actual price and monthly payment across thousands of vehicles; No more uncertainty for the consumer and seller on what they can afford and their final monthly payment. RealPayments is one of the most exciting innovations in auto finance in decades.
“AutoFi is leading the digital evolution of car buying by combining innovation in automotive finance and retailing,” said Mahesh Aditya, President and CEO of Santander Consumer USA. “We want to help dealers sell as many vehicles as possible, and AutoFi’s platform makes it easier for dealers to do business with Santander Consumer, connecting them more efficiently and effectively with consumers, helping complete transactions faster, and bringing finance innovation into the car buying process. We are privileged to be part of AutoFi’s growth story.”
AutoFi’s platform integrates the online, remote and in-store automotive sales experience. Customers shopping or researching vehicles online can obtain instant credit approvals and a firm financing offer from AutoFi’s network of leading lending institutions. AutoFi’s customers include North America’s top automotive dealers, digital retailers, banks, OEMs, and online marketplaces.