New York-based Outside Financial has secured a $1.5m funding round to support the launch of its auto loans platform.
This capital was raised in a ‘friends and family round’ and was led by private investment firm Seven Turns, which is controlled by Outside Financial CEO Jon Friedland.
Outside Financial allows consumers access the correct auto financing product, helping users save money when buying a policy or through the refinancing of existing loans. Through the platform, customers can receive financing options best for them on either new or used vehicles.
Capital from the round will be used to enhance its educational content and tools, expand its team and reach new consumers. Outside Financial will also use proceeds for the launch of its platform in coming months.
Outside Financial CEO Jon Friedland said, “Cars are the second-biggest purchase most consumers make, and are critical to most families’ financial success. Considering that tens of millions of Americans can’t afford a $500 auto repair without going into debt, we are hopeful that the $1000 savings we bring can make a difference.”
Last week saw a range of marketplace lending companies receive investments, with Germany-based online loan platform smava bagging a $65m round led by Vitruvian Partners. AccessOne, a financing solution for healthcare patients, acquired fellow patient financing solution HealthFirst Financial.
The North American marketplace lending sector saw a huge decline in funding during the second quarter of 2017, before it shot back up. Across 13 transactions in Q2, only $194m was invested, while Q1 saw $1.8bn deployed in 17 deals and $1.6bn was injected across 15 companies in the third quarter.
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