Molo raises £266m in new funding to expand digital mortgage lending
- Total investment of £266m in debt and equity will fund Molo’s rapid growth in the UK’s £1.5tn mortgage market
- Yabeo led the equity round with new investors Macquarie Group and Patron Capital both joining the board of Molo
- Molo launched in late 2018 with the UK’s first mortgage on mobile proposition and has received rapidly accelerating online mortgage applications in 2020 since COVID
5th October 2020 London – Molo, the UK’s first digital mortgage lender announces today that it has raised a further £266m in debt and equity funding, completing its series A equity funding round.
The investment was led by global financial services firm Macquarie Group (Macquarie) and Patron Capital, a pan-European institutional investor focused on property-backed investments. The equity round was led by Yabeo, an international Venture Capital firm and supported by existing shareholders Andenes Investments, GPS Ventures and others. SpecFin Capital advised Molo. The capital raise comes after a first tranche of £10m for the Series A round that closed in January 2020.
The new funding will be used to accelerate the company’s growth through additional online lending and investment in its proprietary technology and new product propositions, taking Molo a step closer to achieving its vision of making home ownership easier for everyone.
Molo brings a unique technology to the UK mortgage market which is one of the last sectors of financial services to embrace the benefits of digital innovation. Molo combines automated decisioning and human expertise with an ability to integrate with its partners’ systems to deliver faster and more transparent mortgage loans, directly to its customers.
Molo has experienced significantly higher volumes of online mortgage applications post COVID which point to the growing popularity of digital lending and the convenience of its digital model. In August and September alone, Molo’s pipeline of buy to let mortgage applications exceeded £500m.
Francesca Carlesi, CEO and Co-Founder of Molo said:
“Molo has reimagined the whole mortgage experience from scratch; we are applying the convenience and speed of today’s technology for today’s customers. Leveraging instant decisioning and real time data validation, customers can get certainty about their mortgage directly on their mobile, in minutes rather than weeks. This additional backing is a sign of trust in Molo, and we are proud to have reputable players like Macquarie, Patron and Yabeo on our team as we seek to revolutionize the mortgage market.”
Gerrit Seidel, MD of Yabeo, said:
“The mortgage markets globally and particularly in the UK, are the largest financial services segments. Dominated still by traditional banking incumbents and brokerage set-ups, the market is ready for accelerated disruption, unlocking significant cost efficiencies and enabling consumer friendly online mortgage solutions. Molo is best equipped to spearhead these developments in the UK.”
Carolyn Porretta, a Managing Director at Macquarie Group and Non-Executive Board Director of Molo added:
“The UK mortgage market is currently undergoing an enormous transformation to digitalise and make the process of getting a mortgage decision faster and easier than ever before. Molo is at the forefront of this technology and we are looking forward to working with them to realise the opportunity.”
Molo launched in the UK at the end of 2018 as the first fully digital, direct to consumer, mortgage lender in England and Wales, leveraging a proprietary tech platform to deliver simpler and faster online, paperless, buy to let mortgages.
Since launch, Molo has led innovation in the mortgage sector in the UK by reimagining the whole mortgage experience for the 21st century from scratch using a unique combination of automated decisioning and human expertise that integrates with its partners’ systems including Experian and Rightmove to deliver faster and more transparent mortgage loans directly to its customers.
Featured by Innovate Finance earlier this year as ‘the future of mortgages’ and listed amongst the UK’s Top 100 UK Start-ups, Molo’s initial product offering of buy-to-let mortgages for individuals has since grown to include multiple limited company products with portfolio landlord mortgages.
Molo’s vision is making home ownership easier for everyone and this includes plans to offer residential mortgages in the future in addition to buy to let.
Get a real time decision on your mortgage at molofinance.com.
About Macquarie Group
Macquarie Group Limited (Macquarie) is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity, and commodities. Founded in 1969, Macquarie employs 15,849 people in 31 markets. We have been investing in the UK for over 30 years and it is from the UK that we have built the world’s largest infrastructure manager, created a leading global green investor, and become a world leader in commodities. For further information, visit www.macquarie.com.
About Patron Capital
Patron represents approximately €3.4 billion of capital across several funds and related co-investments, investing in property, corporate operating entities whose value is primarily supported by property assets and distressed debt and credit related businesses.
Since it was established in 1999, Patron has invested in over 71 investments and programs involving over 65 million square feet (6 million square metres) in 16 countries, with many of these investments realised.
Investors represent a variety of sovereign wealth funds, prominent universities, major institutions, private foundations, and high net worth individuals located throughout North America, Europe, Asia and the Middle East. The main investment adviser to the Funds is Patron Capital Advisers LLP, which is based in London, and Patron has other offices across Europe including Barcelona, Milan and Luxembourg; the group is comprised of 77 people, including a 45-person investment team. Further information about Patron Capital is available at www.patroncapital.com
yabeo is a venture investment and advisory firm that invests in the early stages of technology companies and develops them sustainably. yabeo’s success lies in growing companies, scaling organizations and rolling out new technologies. Investment focus of Munich-based yabeo is on innovative FinTech (e.g. solarisBank), InsurTech (e.g. CLARK) and Health Tech (e.g. CERA) companies. yabeo currently manages assets under management of more than EUR 100 million across all investment platforms. The aim is to invest in early-stage technology-driven companies that drive change in their segment by redefining the rules of the game using new technology and innovative business models. Further information is available at www.yabeo.de
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