FinTech Octane Lending has successfully closed its Series E funding round, raising $50m in new equity capital.
The latest funding effort brings Octane’s total equity funding to $242m. The funding was led by Valar Ventures with significant participation from Upper90, marking a distinctive round as it comprised solely of existing investors.
These stakeholders have opted to increase their investments, reinforcing their confidence in Octane’s business model and future prospects.
Octane is renowned for transforming the financing process in the expansive powersports market, initially valued at nearly $30bn. The market includes motorcycles, ATVs, UTVs, and personal watercraft. The company leverages a range of digital tools to streamline financing, significantly enhancing the customer experience through efficient, technology-driven solutions.
The newly acquired funds are earmarked for several strategic initiatives. Primarily, Octane aims to venture into new markets while intensifying its presence in existing ones. The investment will also bolster the company’s technological capabilities, potentially setting the stage for sustained long-term growth.
In addition to its market expansion plans, Octane has articulated a clear vision for leveraging its capital to enhance its digital offerings. This includes refining its dealer platforms and expanding its suite of soft-pull prequalification tools, which have already gained considerable traction in the market.
Octane Lending CEO and Co-Founder Jason Guss expressed gratitude and optimism about the future, stating, “We’re honored to strengthen our relationship with Valar and Upper90 as we bring speed and ease to the financing experience. Octane’s digital tools and broad credit coverage have propelled us to become a leader in our initial market of powersports and gain significant traction in adjacent markets, like RVs. This new funding will help us build on this momentum and expand into new markets as we connect even more people with their passions.”
Since its inception in 2014, Octane has not only redefined the financing experience but also managed to originate over $4bn in loans through its in-house lender, Roadrunner Financial, Inc. The company continues to collaborate with over 30 original equipment manufacturers (OEMs), expanding its reach into markets like recreational vehicles (RVs), tractors, trailers, and electric vehicles.
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