Noah bags $150m investment
Noah has secured a further $150 million to finance equity sharing contracts for homeowners.
Noah founder Sahil Gupta emphasizes the round was not in the form of a venture financing or debt, according to Crunchbase. He describes it as platform capital, or equity, that the company intends to use to invest in homes through its home equity sharing platform.
Gupta notes that the money came from unnamed institutional investors, including pension funds.
The US-based homeowner financing company has experienced rapid growth since securing its Series A funding from Union Square Ventures in 2019.
Noah recently rebuilt its technology platform from the ground up to allow homeowners to benefit from faster, simpler pre-qualification to meet their immediate financial needs.
It works by just answering three questions – the address of the property, the debt balance on the home, and the homeowner’s credit score. Noah claims to pre-qualify homeowners for financing in less than two minutes.
From there, homeowners who want to move forward with the process can submit their application using Noah’s customer portal which helps the company to gain a holistic view of each individual homeowner. “From start to finish, Noah is able to distribute funds in as little as 15 days,” it notes in a statement.
“This latest capital shows our investors’ commitment to helping advance the aspirations of US homeowners,” says Rahul Parulekar, chief investment officer.
Noah will use the $150 million in capital to continue providing more homeowners with up-front, payment-free financing, and in return, sharing a percentage of the home’s future appreciation or depreciation.
“Amid this state of financial uncertainty, we’re encouraged by our latest capital investment as it strengthens our ability to continue to partner with homeowners and help them access immediate funds,” says Gupta.
Founded in 2016 and headquartered in San Francisco, Noah’s equity sharing model is a debt-free alternative to traditional home equity loans and HELOCs. The company notes that it is actively hiring to help support and scale its product offerings, as it aims to expand its product offering in East Coast markets in Q2 2020.