Tomo secured a $40 million Series A led by SVB Capital and doubled its valuation to $640 million. Round participants include Ribbit Capital, NFX, Telesoft, Zigg Capital and Parker89.
The development comes as the mortgage fintech looks to hone software development and data science initiatives, as well as expand across all 50 states.
“We are maniacally focused on improving the purchase mortgage experience and have never been distracted by the temporary profits of the refi business,” said Greg Schwartz, Tomo’s chief executive officer and co-founder.
“As homes continue to sell at a rapid clip, this focus has allowed us to sidestep the disorder that many lenders now find themselves in and to make huge leaps forward in serving homebuyers and partnering with real estate agents.”
Why It Matters: Since it’s founding in 2020 by former Zillow Group Inc (NASDAQ:Z) executives Schwartz and Carey Armstrong, Tomo has launched in seven states.
“In less than a year since they launched their online platform, the team at Tomo has proven they have the drive and the experience to transform the mortgage industry,” said Tilli Bannett, managing partner at SVB Capital. “And that’s why SVB Capital led this round, after investing in the company’s seed round. We believe they are building a company that will reshape how people buy homes.”
