Wholesale financing technology and loan servicing platform Vero Technologies has closed its US$8.5m Series A funding round, as it bids to fulfil its aim to make wholesale financing a practicable revenue stream for banks.
The investment round was led by BankTech Ventures, with further strategic investment from Sopra Steria Ventures, Arcadia Funds, Antler, AAF Management and the Independent Community Bankers of America.
Vero: Raising capital to make wholesale financing work
The fintech has been able to secure capital from this significant list of investors after generation US$150m in originations in the past year alone.
Vero plans to use its new capital to accelerate the growth of its lending-as-a-service (LAAS) offering, giving more banks the digital solution to overcome financial processes blocking their path in the wholesale financing market.
Wholesale, or ‘floor-plan’ financing, has historically been difficult for banks to offer due to the complexities associated with originating, servicing and monitoring dealers and traders.
For context, wholesale financing is something typically sought by manufactured goods dealers, namely auto, powersports and agricultural equipment dealers who need capital to source inventory items from manufacturers and suppliers.
Vero provides banks with a ready-made solution to help support the services industry, meaning banks don’t need to overhaul existing systems or overhaul specialised headcount.
Leveraging open banking technology, Vero’s platform offers end-to-end loan lifecycle management to its current user base; its capabilities span underwriting, loan servicing, digital auditing, risk management, real-time inventory and financial analytics.
John Mizzi, CEO of Vero Technologies, says: “We’ve been fortunate to build a viable product and achieve initial market penetration with minimal funding to date.
“Now, as we set out to expand, we’re pleased to do so in partnership with BankTech Ventures, Sopra Steria Ventures and other strategic investors who share our vision of providing banks with a bespoke solution for wholesale finance.
"This investment will enable us to build our growing footprint with community and regional banks across the country and enhance our platform's capabilities."
Carey Ransom, Managing Director of BankTech Ventures, adds: "We are excited to lead the Series A funding round for Vero.
"Their commitment to driving innovation within community banking aligns perfectly with BankTech’s mission to expand community bank capabilities.
“We believe Vero has tremendous potential to transform the inventory financing landscape and create significant value for dealers and lenders alike."
Currently operating in regional areas of the US, Vero hopes new funding can see it extend its services to a much wider area.
Please also take a look at our upcoming virtual event, FinTech LIVE London, coming on 8-9 November 2023.
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