The Series A-2 round was led by Third Prime Capital.
To date, Octane Lending has raised $12 million. Most recently, the New York, N.Y.-based company closed a Series A-1 round in September 2016. The venture capital financing was co-led by IA Ventures and Berenson and Co., with participation from Contour Venture Partners, DreamIt Ventures, FinTech Collective, FundersClub, and Third Prime Capital.
The Series A-2 funding round comes just six months after launching startup Roadrunner Financial.
Octane Lending, a lender aggregator, was founded in December 2014 to help dealers efficiently secure financing for their customers from a marketplace of lenders and insurance providers. Dealers reached out to Octane Lending for a solution regarding customers that did not fit into their prime or subprime lenders’ programs, and Octane was unable to attract such lenders to their platform, said the company’s Chief Executive Jason Guss. As a result, Octane launched a finance subsidiary Roadrunner Financial in June 2016.
Separately, Octane Lending hired former GE Capital Chief Risk Officer Ray Duggins in April 2016 to take charge of risk analytics, model development, underwriting, and account servicing, according to Duggins’ LinkedIn profile. Duggins also works closely with Guss on business strategy and fundraising.
Roadrunner offers near-prime financing for select new vehicles for Aprilia, Arctic Cat, Bad Boy Off Road, Bennche, BMS, Can-Am, CFMOTO, E-Z-GO, HYOSUNG, Kymco, Massimo Motor, Moto Guzzi, Odes, Piaggio, Ski-Doo, SSR, Suzuki, and Vespa. Most recently, Roadrunner Financial partnered with Bombardier Recreational Products Inc. in early January to offer near-prime consumer financing to BRP’s network of authorized dealers.
Roadrunner Financial targets consumers declined by traditional prime lenders and extends loans to consumers with Fico scores as low as 580, depending on the OEM, and operates in 43 states, according to its website. Loan terms range from 24 to 72 months.
Octane Lending is an indirect lending platform provider that pairs dealers with lenders. It works with almost 2,000 dealers and 14 lenders, including Excel Finance, Home Loan Investment Bank, HorsePower Financial Services, LightStream, and Nextep Funding, among others.Like This Article