MassMutual backs Acorn Finance
Embedded home improvement lending platform Acorn Finance closed an $8.4 million Series A funding round led by MassMutual Ventures .
Moderne Ventures and previous investors Vestigo Ventures, Accomplice and MetaProp also participated in the round. A prior $4 million in seed financing brings the company’s total funding to $12.4 million.
The latest investment will enable Acorn Finance to expand the number of lenders in its marketplace by including regional banks and credit unions, process loans almost instantaneously instead of next day, enhance the customer experience by slashing application time in half, and improve its algorithms to help borrowers choose the right offer based on key criteria including location, how quickly they need the money, the type of project and their credit risk.
“This new funding will allow us to double our team and expand Acorn’s technology to instantly provide customers with the most competitive lending options at the point of need. We are thrilled to welcome MassMutual Ventures and Moderne Ventures as investment partners and look forward to leveraging their deep Fintech and Proptech expertise to accelerate Acorn’s growth.” – Giri Addanki, CEO and founder of Acorn Finance.
In 2021, the number of customers applying for loans through the Acorn Finance platform and Acorn’s revenue grew by 800%. Acorn Finance currently serves the $500 billion home improvement market and is exploring an expansion into additional industries including elective healthcare, legal expenses and e-commerce for a total addressable market of $1.7 trillion.