Funding Fridays—Tomo raises $40 million Series A

Purchase mortgage fintech Tomo has nabbed a $40 million Series A funding round led by SVB Capital with participation from Ribbit Capital, NFX, Zigg Capital, Telesoft Partners and proptech VC firm Parker89—more than doubling the company’s valuation to $640 million.

Founded in late 2021 by former Zillow executives Greg Schwartz and Carey Armstrong, Tomo offers homebuyers a simpler, faster, less expensive mortgage experience by heavily focusing on purchase loans and pairing its innovative technology with local experts.

Tomo currently operates in Michigan, Ohio, Colorado, Connecticut, Florida, Texas, and Washington with plans to expand to Illinois, Maryland, North Carolina, Tennessee, and Washington, D.C. later on this year.

After having previously raised a $70 million seed round back in June 2021, Tomo will use this latest round of funding to invest in software development, enhance data science, and expand industry relations.

Dubbed as the 'PayPal for the mortgage industry,' Tomo offers both underwritten pre-approvals and verified pre-approvals which do not require hard credit checks and can be completed in as little as 3 hours.

CEO Take: With Tomo recently launching in Michigan and Ohio, the fintech now covers nearly a third of the entire U.S. real estate market.

As a result, they are facing stiff competition from not only traditional mortgage providers but also up-and-coming technology startups that offer similar products aimed at digitizing archaic real estate processes. 

Tomo is helping differentiate itself from the rest of the marketplace by using data and software to accelerate the pre-approvals and purchase processes for buyers. In the current state of the housing market that's characterized by intense bidding wars, Tomo is giving buyers an edge to not only compete with other offers but also win using data accuracy and transaction speed.

Congratulations to Tomo on your recent funding round and doubling your valuation! If you are ever in the market for a property data provider to assist with information verification for your underwritten and verified pre-approvals, please connect with us, we'd love to partner with you!

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