AutoFi has raised $10 million in its quest to make it easier to take out a car loan.
The San Francisco-based financial technology company said on Thursday it has completed a Series A funding round, with investors including Crosslink Capital, Ford Motor Credit Company and Lerer Hippeau Ventures.
AutoFi makes a white-label technology platform that allows car dealers to offer faster, online financing to customers. It recently partnered with Ford’s financing arm, Motor Credit, and its technology is being introduced at select Ford and Lincoln dealerships.
The company plans to use the funding to support its roll-out at these dealerships, in addition to signing up new manufacturers and lenders. It’s also expanding into Canada.
“Consumers consistently rank the financing process as the worst part of the car-buying experience,” says AutoFi CEO Kevin Singerman. “We’re creating a much more transparent process that’s driven by the consumer.”
With AutoFi’s technology, a consumer can browse financing options from a network of lenders online and apply for a loan on a car dealer’s website or mobile app if they’re already in the showroom. They will be given a financing decision in minutes. That’s opposed to sitting at a car dealership filling out paperwork for several hours on a weekend, says Singerman.
Rather than take on the automotive industry, AutoFi has positioned itself as a partner that’s helping car companies and lenders improve upon an outdated process. Dealers stand to close more deals, and more quickly, via a streamlined online financing process. Lenders are able to offer financing to more customers.
“We built this business to be very dealer-friendly,” says Singerman. “More customers are going to do business with them if it’s easier to do business.”
AutoFi is launching in Canada through a partnership with Tricor Automotive Group, which has over 200 dealerships across a multitude of brands. It’s set to begin its roll-out there in 2018.
“A company this young normally wouldn’t expand geographically but the opportunity was just so compelling,” says Singerman. “It’s a great way to build a beachhead in a very close, similar market.”