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Fraction, a BC-based fintech platform focused on guiding homeowners to access their home equity, has profitably raised $20 million through a Series funding round.
Led by QED Ventures, the round also saw participation from present investors including Impression Ventures, Primetime Partners, Panache Ventures along Global Founders Capital.
“We want to make managing your home equity as flawless and easy as booking a stay on Airbnb, and we are very energized to have QED joining to help us do that,” said Fraction co-founder and CEO Hayden James.
Since its February 2021 launch, Fraction has allowed homeowners to access the equity in their homes. With the cash payments from Fraction, clients have been able to decrease existing debts, invest in their home, obtain a new home, and cover unexpected expenses.
To date, the platform’s users have got an average of $350,000 from their home equity. Aside from wanting no monthly payments, the platform provides the flexibility of calculating interest rates based on the admiration of the client’s home.
With the latest financing, Fraction is looking to grow into the U.S. market, as well as purify its product offerings to create even more clearness and flexibility for homeowners to manage their home equity.
“In addition to increasing to the US, we are also building out a completely new Loan Origination System (LOS) to be able to fundamentally advance upon the customer experience,” James said.
Currently, the company provides clients 40% loan-to-value on a five-year term; Fraction said it will shortly raise it to a 50% LTV, as well as give a 10-year term option.
Reference Source: WP
