Auto fintech Caribou raises $115 million in Series C funding, valuing company at $1.1 billion
Funding round led by existing investor Goldman Sachs Asset Management
WASHINGTON, May 20, 2022 (GLOBE NEWSWIRE) — Caribou, the auto fintech whose mission is to help people take control of their car payments, today announced it has closed $115 million in an oversubscribed Series C funding round, which brings 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, Moderne Ventures, Motley Fool Ventures and others.
Auto lending is the fastest growing consumer credit market in the U.S., with total auto debt having doubled to roughly $1.5 trillion in little more than 10 years. With the cost of car ownership soaring, Caribou is providing consumers with much-needed financial relief, saving its customers on average more than $100 a month on their auto loan through refinancing. The company is expanding its services across the auto financial landscape, recently launching its digital car insurance marketplace.
“We are putting people in control of their auto finances, saving them thousands of dollars with a fast and easy process,” said Caribou CEO Kevin Bennett. “We’re proud of what we are building and grateful to have such a talented team and experienced group of investors backing our vision. We are just getting started.”
Founded in 2016, Caribou (formerly MotoRefi) has rapidly grown its core auto refinancing offering by connecting car owners with lenders from credit unions, community banks and other trusted financial institutions. Caribou now also provides a quick and easy way to shop and compare car insurance from trusted national carriers in minutes with its new car insurance marketplace. By combining technology with expert lending and insurance teams, Caribou is prioritizing transparency and trust in the car ownership experience.
Since closing its first auto loan for customers a little over four years ago, Caribou has refinanced more than $1.5 billion in loans, saving its customers over $100 million in total interest over the lifetime of their loans. The company has simultaneously scaled its business operations across Washington D.C. and Denver, as well as remotely, building a 500-person workforce, up from roughly 40 employees two years ago.
The Series C funding round will help Caribou to continue its strong growth trajectory by investing in its platform, innovative new products and continuing to expand the team.
“Caribou is building an important company with a great culture that helps consumers and lenders in an enormous market. That’s why we’re thrilled to be doubling down on our initial investment by leading Caribou’s Series C funding round,” said Jade Mandel, Vice President within the Growth Equity business within Goldman Sachs Asset Management and a member of Caribou’s Board of Directors. “In a few short years, Caribou has established itself as the industry leader in auto fintech, already having saved customers more than $100 million on their car payments. We’re excited about the launch of its digital insurance marketplace and we can’t wait for what’s next.”
“We couldn’t be more excited to join Caribou on its mission to put consumers in control of their car payments,” said Justin Moore, CEO of Innovius Capital. “With the costs of car ownership soaring, and macroeconomic headwinds negatively impacting people’s finances, we believe that it’s more important than ever to help people save money. Caribou has established itself as the go-to platform to refinance their auto loan and we are excited for all that is to come.”
Caribou’s Series C round 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 more than $190 million since the company’s founding in 2016.
Caribou believes taking control of your auto loan and insurance payments should be simple and transparent. Through our partnerships with trusted lenders, like credit unions and community banks, we bring customers great rates and lower monthly payments, saving customers an average of over $100 per month on their car payments through refinance. Now, in addition to auto refinance, customers can discover more potential savings through 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 great investors.
About Goldman Sachs Asset Management Growth Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003 the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare. Follow us on LinkedIn.
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