Finova Financial secures record $ 52.5 million FinTech funding
WEST PALM BEACH, Florida & SAN FRANCISCO – (BUSINESS WIRE) –Finova Financial The industry-first cloud-based, mobile-based auto securities lending platform to consumers raised $ 52.5 million in the form of a combination of equity and a facility to credit, one of the largest initial cycles in FinTech industry history, Finova announced today.
The funding round has been led by Silicon Valley and international venture capitalists, prominent tech entrepreneurs and others, including: MHS Capital; Refactor Capital; Metamorphic enterprise; 500 StartUps; Leading fintech entrepreneurs Sam Hodges, co-founder and CEO of Fundraising circle; Jake Gibson, co-founder of Nerdwallet; Al Hamra Group, a private company owned by the ruling family of Ras Al Khaimah, United Arab Emirates, and others. CoVenture
provided the credit facility to support business growth.
The financing will be used by Finova to develop the industry’s first fully digital lending platform serving the automotive securities lending market, with a focus on social impact, while offering a cost of up to 70% inferior to consumers.
“Finova Financial was launched to help consumers obtain much-needed liquidity without the traditional barriers of high interest rates, inconvenient application processes and restrictive payment terms in the auto securities lending industry,” said the CEO Gregory Keough. “As a company committed to social impact, we see Finova Financial as an advocate for the financial well-being of consumers through better access to credit, better repayment terms and reduced costs.”
Find images and biographies of founding CEOs Gregory Keough and Derek Acree here.
An industry ripe for transformation
With more than 28% of Americans unbanked or underbanked, the need for safe, transparent and fair loans is greater than ever. In the United States alone, 70 million underserved consumers pay $ 138 billion in fees and interest on alternative financial products each year, which is very prohibitive for individuals and families with short-term financial needs. Auto title loans often require payment within 30 days and charge over 300% interest on loan terms. Finova’s Auto Line of Credit (C-LOC) online product and cloud-based lending platform eliminate this model, providing the ability to build or rebuild credit through loan repayment terms. transparent.
“Greg and his team have done an incredible job building the fintech company of the future to meet the very specific needs of the unbanked and underbanked people in the United States,” said David Lee, Co-Founder and Managing Partner, Refactor Capital and former managing partner of SV Angel. “Finova has been very successful, and we look forward to working closely with them as they evolve rapidly, giving consumers the opportunity to get back on track financially.
The C-LOC loan solution is the first in a series of digital financial services products the company plans to offer in response to the needs of hundreds of millions of global consumers outside of the formal financial system.
About Finova Financial
Finova Financial is transforming the FinTech industry as a socially responsible online lender, offering fast and affordable loans based on your car’s equity. Founded in 2015 by a team of financial services, technology and payments experts, Finova provides an online path to financial well-being and fair loans to the 70 million financially disadvantaged Americans who spend $ 138 billion annually. dollars in fees and interest for alternative financial products. Finova’s Auto Line of Credit (C-LOC) costs 70% less than the current national average, provides 24-hour access to capital and a 12-month return to financial health through its online platform and mobile. Finova Financial is backed by prominent Silicon Valley investors such as MHS Capital; Refactor Capital; CoVenture;
Metamorphic enterprise; 500 StartUps; Leading fintech entrepreneurs Sam Hodges, co-founder and CEO of Fundraising circle; Jake Gibson, co-founder of Nerdwallet; – Al Hamra Group, a private company owned by the ruling family of Ras Al Khaimah, UAE and others.
For more information: www.finovafinancial.com