Digital mortgage point-of-sale software developer Cloudvirga has raised $50m in its Series C funding round.
The investment was led by private equity firm Riverwood Capital, and participation from Upfront Ventures.
Cloudvirga creates POS platforms for the mortgage industry, automating back office workflows to reduce costs and improve transparency. The company offers two products a solution for consumers and a service for enterprises.
Its consumer platform lest customers to enter and verify information instantly and through mobile devices. The platform automatically generates a loan comparison report and keeps the consumer up-to-date with guidelines and asset verification.
The enterprise POS solution enables customers to complete the application through their mobiles, which eases access to loan data for lenders. It also helps to simplify compliance issues, and create detailed analysis of loans for operational reporting.
This capital injection will be used to lower the high loan production costs through automation.
Cloudvirga CEO Michael Schreck said, “Our industry’s current ‘shiny object syndrome’ has resulted in a preoccupation with the digital application. Instead, Cloudvirga’s technology uniquely tackles the mortgage cost problem, which has helped us garner tremendous interest from many of the country’s top private-equity funds.”
Since the company’s foundation, Cloudvirga has raised more than $77m, with its Series B picking up $20m in a round led by Blackstone Group portfolio company Incenter last year. The company also raised $7.5m in its Series A round, which was led by Upfront Ventures, Tribeca Angels and Dallas Capital in 2016.
Last year, Riverwood led the $50m investment into payment cycle management company Billtrust. Earlier this year, Edison Partners, one of the company’s investors, sold its stake to W Capital Partners for a 10-times return.
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