Automotive fintech Caribou raises $1
WASHINGTON, May 20, 2022 (GLOBE NEWSWIRE) — Caribou, the automotive fintech on a mission to help people take control of their car payments, announced today that it has closed $115 million in an oversubscribed Series C funding round, bringing the company’s valuation to $1.1 billion. The round was led by Goldman Sachs Asset Management (Goldman Sachs), with participation from new investors including Innovius Capital and Harmonic, as well as existing investors including Accomplice, CMFG Ventures, Curql Fund, Firebolt Ventures, Gaingels, Modern Ventures, Motley Fool Ventures and others.
Auto lending is the fastest growing consumer credit market in the United States, with total auto debt doubling to around $1.5 trillion in just over 10 years. With the cost of car ownership skyrocketing, Caribou is providing much-needed financial relief to consumers, allowing its customers to save an average of more than $100 per month on their car loan through refinancing. The company is expanding its services across the automotive financial landscape, recently launching its digital auto insurance marketplace.
“We put people in control of their automotive finances, saving them thousands of dollars in a quick and easy process,” said Caribou CEO Kevin Bennett. “We are proud of what we are building and grateful to have such a talented team and a group of experienced investors who support our vision. We’ve only just started.”
Founded in 2016, Caribou (formerly MotoRefi) quickly grew its core auto refinance offering by connecting car owners with lenders from credit unions, community banks, and other trusted financial institutions. Caribou now also offers a quick and easy way to shop and compare auto insurance from trusted national carriers in minutes with its new Auto Insurance Marketplace. By combining technology with expert loan and insurance teams, Caribou prioritizes transparency and trust in the car ownership experience.
Since closing its first auto loan for customers just over four years ago, Caribou has refinanced more than $1.5 billion in loans, saving customers more than $100 million in interest. totals over the term of their loans. The company simultaneously expanded its business operations in Washington DC and Denver, as well as remotely, building a workforce of 500 people, up from about 40 employees two years ago.
The Series C round of funding will help Caribou continue its strong growth trajectory by investing in its platform, new innovative products and continuing to grow the team.
“Caribou is building an important business with a great culture that helps consumers and lenders in a huge market. That’s why we’re excited to double our initial investment by leading Caribou’s Series C funding round,” said Jade Mandel, Vice President of Growth Equity at Goldman Sachs Asset Management and Board Member. of Directors of Caribou. “In just a few years, Caribou has established itself as the leader in the automotive fintech industry, having already saved its customers over $100 million on car payments. We are excited to launch its digital insurance marketplace and we can’t wait to see what’s next.”
“We couldn’t be more excited to join Caribou in its mission to put consumers in control of their car payments,” said Justin Moore, CEO of Innovius Capital. “With the costs of car ownership skyrocketing and macroeconomic headwinds negatively impacting people’s finances, we believe it’s more important than ever to help people save money. Caribou has established itself as the go-to platform for auto loan refinancing and we’re excited for everything to come.
Caribou’s Series C builds on a successful $50 million Series B that closed in May 2021, which was also led by Goldman Sachs. The Series C round brings the total funding Caribou has raised to over $190 million since the company was founded in 2016.
Caribou believes taking control of your car loan and insurance payments should be simple and transparent. Through our partnerships with trusted lenders, such as credit unions and community banks, we offer our customers great rates and lower monthly payments, saving them an average of over $100 per month on car payments through refinancing. Now, in addition to auto refinance, customers can discover more potential savings with Caribou’s new digital insurance marketplace. Caribou, incubated by QED Investors, is also backed by Accomplice, CMFG Ventures, Curql Fund, FireBolt Ventures, Gaingels, Goldman Sachs, Harmonic, Innovius Capital, Link Ventures, Moderne Ventures, Motley Fool Ventures and other top investors.
About Goldman Sachs Asset Management Growth Equity
Combining traditional and alternative investments, Goldman Sachs Asset Management offers clients around the world a dedicated partnership and a focus on long-term performance. As the primary investment area within Goldman Sachs (:GS), we provide investment and advisory services to the world’s leading institutions, financial advisors and individuals, drawing on our deeply connected global network and tailor-made expert information, in all regions and markets. over $2 trillion in assets under supervision globally as of March 31, 2022. Driven by a passion for client performance, we seek to build long-term, belief-based relationships, sustainable results and a shared success over time. Goldman Sachs Asset Management invests across the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003, Goldman Sachs Asset Management’s Growth Equity practice, which employs more than 75 people, has invested more than $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investing in growth-stage, technology-driven companies spanning multiple sectors, including enterprise technology, fintech, consumer and healthcare. follow us on LinkedIn.
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