On Wednesday, New York-based mortgage startup Morty announced the closing of its $25 million Series B funding round. This brings the company’s total funding raised to $38.4 million and comes a little under two years after it launched its platform and announced its Series A.
Morty has created an online mortgage marketplace for homebuyers to shop around for the best mortgage lender. Financial institutions have been providing mortgages to homebuyers for generations, which means that there are a lot of options for homebuyers to decide between. And on top of that, signing up for a mortgage can be up to a 30-year commitment. So it’s important for homebuyers to weigh their options before committing to what may be the largest financial transaction of their life.
Morty’s platform not only helps homebuyers compare mortgages, it also automates the process of applying for one and closing on a loan.
You’ve likely heard how wild the housing market is right now, with huge demand and low supply sending prices soaring. In response to these surging prices, many of the people who’ve been looking to buy houses this year are looking for other ways to save money. Getting a mortgage at a lower rate can be one of those ways to save.
For that reason, Morty saw demand for its service skyrocket. In the past 12 months, Morty has processed over $500 million worth of loans on its platform, and it saw revenue jump 800 percent year over year.
“The past 12 months have been a transformative time for the housing market,” Morty CEO and co-founder Nora Apsel said in a statement. “As homebuyers rushed to make purchases, Morty was there to provide a personalized, interactive loan selection, lock in competitive rates and stand shoulder-to-shoulder with them through to closing. Our business model, and our philosophy, are about advocating for homebuyers. This investment will allow us to develop our product and pursue partnerships that align with that worldview.”
Morty plans to use this new funding to scale to meet demand. It intends to expand to new markets so it can service all 50 states by the end of the year (currently it serves 36 and Washington, D.C.). It also plans to invest in its product and hiring. It currently has over 20 open job listings for roles across engineering, finance, marketing, sales and more.
Growth investor March Capital led Morty’s Series B round. With the investment, Julia Klein of March Capital will join the company’s board of directors.
