Acorn Finance raises $8.4m in Sequence A funding led by MassMutual Ventures
By Edlyn Cardoza
- Acorn Finance
- Credit score threat
- Credit score Unions
Acorn Finance, an embedded lending marketplace for residence enchancment financing, has raised $8.4 million in Sequence A funding led by MassMutual Ventures. Moderne Ventures and former traders Vestigo Ventures, Confederate and MetaProp additionally participated within the spherical. A previous $4 million in seed financing brings the corporate’s complete funding to $12.4 million.
The newest funding will allow Acorn Finance to broaden the variety of lenders in its market by together with regional banks and credit score unions, course of loans nearly instantaneously as an alternative of the subsequent day, improve the shopper expertise by slashing utility time in half and enhance its algorithms to assist debtors select the proper supply primarily based on key standards together with location, how shortly they want the cash, the kind of venture and their credit score threat.
Eric Emmons, managing director of MassMutual Ventures, will be part of the Acorn Finance Board of Administrators alongside Michael Nugent, managing director of Vestigo Ventures, who has been on the board since 2019.
“This new funding will enable us to double our crew and broaden Acorn’s know-how to immediately present prospects with probably the most aggressive lending choices on the level of want,” stated Giri Addanki, CEO and founding father of Acorn Finance. “We’re thrilled to welcome MassMutual Ventures and Moderne Ventures as funding companions and stay up for leveraging their deep Fintech and Proptech experience to speed up Acorn’s development.”
In 2021, the variety of prospects making use of for loans via the Acorn Finance platform and Acorn’s income grew by 800%. Acorn Finance at present serves the $500 billion residence enchancment market and is exploring an enlargement into extra industries together with elective healthcare, authorized bills, and e-commerce for a complete addressable market of $1.7 trillion.
“Acorn’s embedded lending market will increase client alternative whereas enhancing proposal ticket measurement and conversion charges,” stated Emmons. “The crew’s excellent mixture of vertical-specific experience and client credit score permits them to ship a singular answer for SMB and repair companies.”
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January 13, 2022
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