Axis Auto receives $12.3M investment from Westlake-driven fintech

Axis Auto Finance is improving its direct digital loan origination process in the Canadian market through a $12.3 million investment from NowLake Technology . NowLake Technology, the fintech parent company of Westlake Technology Holdings and Nowcom Corporation that launched in February, has agreed to purchase 30 million common shares of Axis at $0.40 per share. NowLake will own approximately 23% of the issued and outstanding common shares when the deal closes by yearend, according to Axis, a used-vehicle lender that serves approximately 30% of the Canadian market. Los Angeles-based Westlake first entered the Canadian market in 2019 through a partnership with Ontario-based Axis to test the market before committing to Canadian investments. In November 2019, Westlake also partnered with Ontario-based auto finance company Source One Financial . The latest investment by fintech NowLake is “the logical next step in our relationship [with Westlake] because they see that we bring a lot of value,” Axis President Ilja Troitschanski told Auto Finance News . In partnership with Westlake, Axis is originating and servicing loans for a fee, and Westlake keeps Axis on its balance sheet. Westlake manages $32.5 million, or 35%, of Axis’ total originations. Capital from the deal will support further advancements to Axis’ existing digital loan originations capabilities. “We realized that growth in this market will be driven by technology, so we’ve invested a lot of time and a lot of money in really making our processes more automated,” Troitschanski said. Dealer groups have already reached out to Axis to integrate directly with the lender’s dealer platforms to improve the loan origination process, he told AFN . “It is in everybody’s interest [customers and dealers] to make that process smoother.” Axis also plans to roll out a new digital loan origination tool in the coming weeks, Troitschanski said, without providing further details. NowLake’s investment comes on the heels of Axis’ record fiscal 2021, with originations up 46% year over year to $93 million, and delinquencies and credit losses remaining below historic levels. Auto Finance Summit, the premier industry event, returns October 27-29 in Las Vegas. The Summit continues to bring together the best and brightest in the industry year after year for unparalleled networking and professional education. To learn more about the 2021 event and register, visit www.AutoFinanceSummit.com .

Axis Auto receives $12.3M investment from Westlake-driven fintech

The investment will fund the financier’s digital origination capabilities

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Axis Auto receives $12.3M investment from Westlake-driven fintech

The investment will fund the financier’s digital origination capabilities

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Fifth Third logs recovery on NCOs, 24% YoY growth in auto in Q3

Ironhorse Funding COO Jon Krumdick talks powersports finance market growth

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