Tomo, the fintech startup that’s transforming the way people buy homes, announced it raised $40 million in its Series A round, more than doubling its valuation to $640 million. SVB Capital led the fundraising, which included previous investors Ribbit Capital, NFX and Zigg Capital, as well as new investor Telesoft Partners.
In a sign of confidence from the real estate industry, proptech venture capital firm Parker89 also joined the round with a first-time investment in Tomo. The company will use the new capital to increase its investments in software development, data science and industry relations.
Tomo raised $70 million in its earlier Seed round, one of the largest ever in the U.S. at the time. That first fundraise valued the company at $312 million. The startup was founded in October 2020 by former Zillow executives Greg Schwartz and Carey Armstrong.
“In less than a year since they launched their online platform, the team at Tomo has proven they have the drive and the experience to transform the mortgage industry,” said Tilli Bannett, managing partner at SVB Capital. “And that’s why SVB Capital led this round, after investing in the company’s Seed round. We believe they are building a company that will reshape how people buy homes.”
The company also said it has expanded its reach into Michigan and Ohio, growing its purchase mortgage footprint to nearly a third of the U.S. market after earlier launching in Texas, Florida, Washington, Connecticut and Colorado. Additionally, it recently added jumbo loans to its offerings, and will be adding a number of additional loan products in the coming months aimed at expanding access to home ownership to more first-time homebuyers.
Focused on the $1.6 trillion purchase-mortgage sector, Tomo is transforming the way people buy homes, pairing exclusive technology with responsive local experts to create an entirely new mortgage experience – one that is simpler, faster, more affordable and way less stressful. The company partners with leading real estate agents in each market to provide a complete home-buying experience.
“We are maniacally focused on improving the purchase mortgage experience and have never been distracted by the temporary profits of the refi business,” said Greg Schwartz, Tomo’s chief executive officer and co-founder. “As homes continue to sell at a rapid clip, this focus has allowed us to sidestep the disorder that many lenders now find themselves in and to make huge leaps forward in serving homebuyers and partnering with real estate agents.”
In 2021, Tomo closed 100% of its loans on time. That isn’t the only difference – the company also delivers homebuyers great rates, charges no lender fees, provides fast and accurate underwriting and personal service seven days a week, 14 hours a day. This stands in stark contrast to the pain, chaos, hidden expense and indifferent treatment homebuyers have come to expect from lenders today.
In contrast to some of their peers, Tomo is rapidly growing its team and is currently hiring for roles in Stamford, Conn., Seattle, Wash., Austin, Texas and remote. Visit hellotomo.com/careers for more information.