Octane Lending has raised $52 million in Series D funding at a valuation of $900 million according to the Fintech. The funding round was led by Progressive Investment Company, Inc. (part of Progressive Insurance with participation from existing investors Valar Ventures, Upper90, Contour Venture Partners, Citi Ventures, Third Prime and Parkwood. Octane added some other names to the investor roster including Gaingels and ALIVE.
Octane has raised over $192 million in total equity funding to date.
Octane is a digital lending platform that targets the recreational vehicle market. Think ATVs or motorcycles or even riding lawn mowers. Octane providers automated underwriting leveraging its in-house lender “Roadrunner Financial.” The market Octane targets is estimated at tens of billions of dollars in annual transactions.
Octane says the additional money will be used to further scale its buying solution for consumers shopping for powersports vehicles online, boost its family of 3,800 dealership partners and 40 OEM and brand partners and expand to adjacent markets.
Octane CEO Jason Guss commented:
“We’re thrilled to embark on the next phase of growth backed by Progressive Insurance and our existing partners, who wholeheartedly believe in our mission of connecting people with their passion. We are winning in the market because we offer a faster lending experience that also covers more consumers than competitors, and we engage shoppers earlier in the process to streamline transactions.”
Andrew Quigg, Chief Strategy Officer at Progressive Insurance, said Octane adds value at each stage of the purchasing journey by prequalifying consumers instantly on dealer and OEM websites and helping consumers find a dealership for a simple closing experience.
“We’re excited for the opportunity to invest in Octane,” said Quigg. “Technology and consumers’ needs continue to evolve and Octane’s point-of-sale loan origination platform provides benefits to consumers and dealerships in a specialty segment of the lending market. We like to partner with innovative, forward-thinking companies and believe that our investment in Octane aligns very well with this strategy.”
When embedded on partnered websites, Octane says it has increased conversion rates by as much as 7X.
Octane’s point-of-sale offerings enable finance managers at dealerships to close installment loans in as few as five minutes.
Octane says it will originate over $1 billion in the next 12 months, has doubled revenue annually for three years, and is net-income and cash-flow positive.