Having opened for business in Michigan and Ohio, the purchase mortgage fintech is now up and running in seven states.
Tomo, the fintech launched last year by former Zillow executives Greg Schwartz and Carey Armstrong with a tight focus on purchase loans, has announced a $40 million Series A funding round that the company says more than doubles its valuation to $640 million.
Tomo said it will use the new funding to increase its investments in software development, data science and industry relations. The company is currently looking to fill openings in business development, design, engineering, legal and compliance, marketing, human resources, product, and mortgage operations and sales.
Tomo also announced that it’s now operating in seven states, having opened up for business in Michigan and Ohio. The company had previously launched services in Colorado, Connecticut, Florida, Texas and Washington. According to the Nationwide Multistate Licensing System, Tomo Mortgage is also licensed in Illinois, Maryland, North Carolina, Tennessee and Washington, D.C.
SVB Capital led the Series A raise, with participation from previous investors Ribbit Capital, NFX and Zigg Capital, plus new investors Telesoft Partners and proptech venture capital firm Parker89.
“In less than a year since they launched their online platform, the team at Tomo has proven they have the drive and the experience to transform the mortgage industry,” said Tilli Bannett, managing partner at SVB Capital, in a statement. “And that’s why SVB Capital led this round, after investing in the company’s seed round. We believe they are building a company that will reshape how people buy homes.”
Tomo claims that by focusing on purchase loans and pairing its technology with local experts, it can deliver homebuyers a “simpler, faster, less expensive mortgage experience.”
Tomo started off the year by expanding into Florida, Connecticut and Colorado and adding jumbo mortgages of up to $3 million to its product lineup.
“We are maniacally focused on improving the purchase mortgage experience and have never been distracted by the temporary profits of the refi business,” said Greg Schwartz, Tomo’s chief executive officer and co-founder, in a statement. “As homes continue to sell at a rapid clip, this focus has allowed us to sidestep the disorder that many lenders now find themselves in and to make huge leaps forward in serving homebuyers and partnering with real estate agents.”