Fintech marketplace for home loans MortgageMarket says it is looking to expand its operations after completing its latest round of funding – raising R10 million from venture capital firm IDF Capital.
MortgageMarket is a customer-centric online platform that harnesses technology and customer service to allow users to compare home loan offers from SA’s top six banks within 48 hours.
It was co-founded in 2019 by Tim Akinnusi, a former Nedbank home loans executive and former Absa home loans managing executive.
The latest funding, which also establishes a partnership deal between MortgageMarket and IDF Capital, comes after MortgageMarket raised R7 million from its founders and private investors in 2019.
The company says it plans to use the funds to bolster its growth strategy and expand its brand throughout SA.
“We will use the funding to strengthen our operations locally, working alongside our partners and SA's top six banks,” says Akinnusi, CEO of MortgageMarket.
“Our platform caters for customers from all corners of the country with no immediate plans to expand internationally. We’re committed to working tirelessly for our customers, growing our team and building out our technology to provide them with the best possible experience when pursuing home ownership.”
Globally, the integration of secure technology and financial services has made significant strides in the property industry, adds Akinnusi, and local customers are ready to embrace the choice, convenience, transparency and control.
MortgageMarket says it pays a cashback of up to R25 000 to qualifying customers who use its automated online platform to acquire a home loan. Since inception, the company says it has paid out over R500 000 in cashback to customers.
The company also developed a home loan pre-approval tech capability that gives consumers access to a free credit and affordability assessment in two minutes, helping clients shop for a property with the confidence of knowing their affordability status.
Johannesburg-based IDF Capital is a specialist entrepreneurial financing institution with over R1.5 billion assets under management.
“MortgageMarket fits well into our portfolio,” says IDF Capital CIO Dineo Skwambane.
“The company has exhibited strong traction to date, in addition to developing a healthy sales pipeline and business partnerships. Importantly, we are jointly executing our value creation strategy with MortgageMarket. This will see interesting synergies between MortgageMarket and our other portfolio companies; the result of which will yield greater shared value to the market.”
Akinnusi points out his company has always wanted to partner with an investment firm that understands how to unlock value beyond capital injection.
“The fit with IDF’s mission was instant; they have a credible track record of investing and building South African start-ups that play a significant role in building the SA economy and creating value for consumers.”
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