Otto raises $4.5 million
Otto the fintech startup giving people the opportunity to tap into their vehicle’s equity for access to credit, has raised $4.5 million in seed funding. The round was led by Uncommon, with participation from Pelion Venture Partners, 1930 Capital, Bloom VP, Spacecadet Ventures, Mark Cuban, and several other angel investors.
Founded in 2021, the Dallas-based startup is building a mobile platform that will allow people to borrow against their vehicles at the same interest rate as standard credit cards. Users will be able to verify and guarantee their cars through Otto’s mobile platform and unlike credit cards, Otto won’t make use of credit scores or charge any fees, including overdraft fees.
Once approved, users receive a new Otto credit card, which they can also use for building credit.
Otto, which will launch in early 2022, makes money through interchange fees and interest.