San Francisco-based startup AutoFi raised $17 million in new financing to help scale its online point-of-sale financing solution, Chief Executive and Co-Founder Kevin Singerman told Auto Finance News.
The investment was led by Crosslink Capital, and joined by Toll Brothers’ Chairman Bruce Toll, Lerer Hippeau Ventures, and other early stage investors.
AutoFi’s automated platform, launched last week, allows dealers to sell cars and F&I products online, while institutional capital, like hedge funds and pension funds, provides the money for the loans.
The marketplace lending model “was a part of our confirmation of a thesis that there is a shift in consumer buying behavior to not only start — but also complete — the car-buying process online,” Singerman said. “What we realized that was missing from that process is the financing solution to make that happen.”
For the next few months, AutoFi will pilot its program with five customers nationwide — a combination of online used-car marketplaces and traditional dealer groups, he said.
Separately, AutoFi and President and Co-Founder Jonathan Palan are facing a lawsuit regarding company ownership, according to public court documents. The case is reportedly expected to go to trial soon.
