The funding will be used to help the company grow its online lending which is currently only available to individual and limited company buy-to-let customers. Molo said it received significantly higher volumes of online mortgage applications once the mortgage market reopened and has grown a £500m pipeline of business in August and September.
Molo will also use the funding to invest in its technology and the development of new products.
The investment was led by Australian investment firm Macquarie Group and European private equity firm Patron Capital, a pan-European private equity firm which focuses on property-backed investments.
The equity round was led by venture capital company Yabeo and supported by Molo’s existing shareholders Andenes Investments and GPS Ventures. SpecFin Capital advised Molo on the investment.
This capital raise comes after a first tranche of £10m for the Series A round that closed in January this year.
Francesca Carlesi (pictured), CEO and co-founder of Molo, said: “Molo has reimagined the whole mortgage experience from scratch; we are applying the convenience and speed of today’s technology for today’s customers. Leveraging instant decisioning and real time data validation, customers can get certainty about their mortgage directly on their mobile, in minutes rather than weeks.
“This additional backing is a sign of trust in Molo, and we are proud to have reputable players like Macquarie, Patron and Yabeo on our team as we seek to revolutionise the mortgage market.”
Carolyn Porretta, managing director at Macquarie Group and non-executive board director of Molo, added: “The UK mortgage market is currently undergoing an enormous transformation to digitalise and make the process of getting a mortgage decision faster and easier than ever before.
“Molo is at the forefront of this technology and we are looking forward to working with them to realise the opportunity.”