Caribou raises $115m in Series C funding, valuing company at $1.1b

By Edlyn Cardoza

Caribou, the auto FinTech whose mission is to help people take control of their car payments, recently announced it has closed $115 million in an oversubscribed Series C funding round, bringing its valuation to $1.1 billion. The round was led by Goldman Sachs Asset Management, with participation from new investors, including Innovius Capital and Harmonic, and existing investors, including Accomplice, CMFG Ventures, Curql Fund, Firebolt Ventures, Gaingels, Moderne Ventures, Motley Fool Ventures, and others.

Auto lending is the fastest-growing consumer credit market in the U.S., with total auto debt having doubled to roughly $1.5 trillion in little more than 10 years. With the cost of car ownership soaring, Caribou is providing consumers with much-needed financial relief, saving its customers, on average more than $100 a month on their auto loan through refinancing. The company is expanding its services across the auto financial landscape, recently launching its digital car insurance marketplace.

“We are putting people in control of their auto finances, saving them thousands of dollars with a fast and easy process,” said Caribou CEO Kevin Bennett. “We’re proud of what we are building and grateful to have such a talented team and experienced group of investors backing our vision. We are just getting started.”

Founded in 2016, Caribou (formerly MotoRefi) has rapidly grown its core auto refinancing offering by connecting car owners with lenders from credit unions, community banks and other trusted financial institutions. Caribou now provides a quick and easy way to shop and compare car insurance from trusted national carriers in minutes with its new car insurance marketplace. By combining technology with expert lending and insurance teams, Caribou prioritises transparency and trust in the car ownership experience.

Since closing its first auto loan for customers a little over four years ago, Caribou has refinanced more than $1.5 billion in loans, saving its customers over $100 million in total interest over their loans. The company has simultaneously scaled its business operations across Washington D.C. and Denver and remotely, building a 500-person workforce, up from roughly 40 employees two years ago.

The Series C funding round will help Caribou continue its strong growth trajectory by investing in its platform, innovative new products, and expanding the team.

“Caribou is building an important company with a great culture that helps consumers and lenders in an enormous market. That’s why we’re thrilled to be doubling down on our initial investment by leading Caribou’s Series C funding round,” said Jade Mandel, Vice President within the Growth Equity business within Goldman Sachs Asset Management and a member of Caribou’s Board of Directors. “In a few short years, Caribou has established itself as the industry leader in auto fintech, already having saved customers more than $100 million on their car payments. We’re excited about the launch of its digital insurance marketplace and we can’t wait for what’s next.”

“We couldn’t be more excited to join Caribou on its mission to put consumers in control of their car payments,” said Justin Moore, CEO of Innovius Capital. “With the costs of car ownership soaring, and macroeconomic headwinds negatively impacting people’s finances, we believe that it’s more important than ever to help people save money. Caribou has established itself as the go-to platform to refinance their auto loan and we are excited for all that is to come.”

Caribou’s Series C round builds on a successful $50 million Series B that closed in May 2021, which Goldman Sachs also led. The Series C round brings the total funding Caribou has raised to more than $190 million since the company’s founding in 2016.