O’Melveny Advises Roostify on $32 Million Financing RoundJanuary 27, 2021
FOR IMMEDIATE RELEASE
SILICON VALLEY—JANUARY 27, 2021—O’Melveny represented Roostify, a San Francisco-based maker of home lending technology, in the completion of a $32 million Series C funding. With this financing, Roostify has now raised $65M in total capital.
Roostify is a home lending technology provider that enables differentiated solutions for mortgage lenders seeking a simpler home lending experience. Unlike one-size-fits-all platforms, Roostify configures its modular technology platform to meet each of our clients' needs and goals. The company intends to use this funding to leverage innovative AI to simplify the entire home buying experience and grow its staff by 50 percent.
The financing round was led by Ten Coves Capital and was joined by investors including principals at Stone Point Capital, Cota Capital, Mouro Capital, Colchis Capital, Point72 Ventures, and JPMorgan Chase.
The O’Melveny team advising Roostify on this transaction was led by O’Melveny’s Corporate Department Co-Chair Warren Lazarow and included M&A partner Brian Covotta and associate Amit Itai.
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The following press release was issued by Roostify:
Roostify secures $32M in round led by Ten Coves Capital to simplify mortgage lending
The Series C funding will accelerate Roostify's vision of simplifying home lending without compromising on quality and time-to-market.
SAN FRANCISCO, Jan. 26, 2021 /PRNewswire/ -- Roostify, a premium home lending technology provider, today announced a $32M Series C funding round. With this financing, Roostify has now raised $65M in total capital. The company intends to use this funding to leverage innovative AI to simplify the entire home buying experience and grow its staff by 50 percent.
The round was led by Ten Coves Capital, whose expertise in technology and financial services will support Roostify in developing a long-term strategy for home lending technology beyond origination. Ten Coves was joined by principals at Stone Point Capital. Returning investors Cota Capital, Mouro Capital, Colchis Capital, Point72 Ventures, and JPMorgan Chase also participated in this funding round.
Roostify is transforming the home lending experience through meaningful AI and data-driven capabilities
"The opportunity to re-design the future of home lending through technology cannot be overstated, as the mortgage lending industry has been relatively slow to embrace digital technologies," said Dan Kittredge, Managing Partner at Ten Coves Capital. "Roostify is well-positioned to accelerate the digitization of home lending infrastructure, and we are excited to partner with the Roostify team to help them power this market transformation."
The COVID-19 pandemic has highlighted the need for critical digital transformation in the home lending industry. While the record-breaking origination volume was welcomed by the industry, it also has strained outdated mortgage lending processes. Throughout the coronavirus crisis, leading mortgage lending institutions across the country turned to Roostify to address this challenge and stabilize operations. In 2020, Roostify scaled to manage a 250 percent increase in overall platform volume. Today, the company supports more than 200 lending institutions and handles roughly $50B in loan volume monthly.
"Having easy access to meaningful digital tools is key to helping lenders thrive in a digital-first world," said Roostify CEO Rajesh Bhat. "That's why we are hyper-focused on perfecting and digitalizing the entire home buying journey from beginning to close. We design meaningful, end-to-end solutions that solve the complex challenges leading home lending institutions face on a daily basis. With this capital infusion, we will accelerate our vision of simplifying home lending without compromising on quality and time-to-market."
Roostify's mission is to deliver a simple home lending platform that fits every client perfectly. Building on a strong technology foundation, the company is transforming the home lending experience through meaningful AI and data-driven capabilities powered by partners such as Google Cloud AI. They are redefining what a truly optimized home lending process looks like in a digital-first world.
Roostify is a home lending technology provider that enables differentiated solutions for mortgage lenders seeking a simpler home lending experience. Unlike one-size-fits-all platforms, Roostify configures its modular technology platform to meet each of our clients' needs and goals.
About Ten Coves
Ten Coves Capital invests in innovative, high growth FinTech companies where its capital, network and decades of experience can help accelerate growth and value creation. Investing across payments, banking & lending, asset management, capital markets, and insurance & benefits, among other segments, the Ten Coves team has helped scale nearly 40 companies that are solving industry pain points, enabling workflows, and providing critical infrastructure to the largest financial institutions down to SMBs.