Finova Financial, an auto title lending platform, has raised $52.5m in fintech funding, an investment deemed to be one of the largest initial rounds in the history of fintech.
The fund, which is a combination of equity and debt, will be used to grow what Finova terms as “the industry’s first all-digital lending platform serving the auto title loan marketplace”.
Investors participating in the funding round include MHS Capital, Refactor Capital, Metamorphic Venture, 500 StartUps, and Al Hamra Group.
Funding Circle co-founder and managing director Sam Hodges, and NerdWallet co-founder Jake Gibson were among the individual investors. CoVenture offered the credit facility.
Finova CEO Gregory Keough said: “Finova Financial was launched to help consumers get critically-needed cash without the traditional barriers of high interest rates, inconvenient application processes and restrictive payment terms of the auto title lending industry.
“As a company committed to social impact, we see Finova Financial as being an advocate for consumer financial well-being through improved access to credit, better repayment terms and lower costs.”