Online vehicle loan platform Tricolor has received $30m in a preferred equity investment from an unnamed global institutional investor.
The capital was raised to scale its retail network and help more consumers access loans.
Tricolor uses a credit decisioning engine assesses non-traditional attributes to help those with no credit or low-income to access loans for cars. To receive a loan, the customer simply has to provide a proof of address, proof of income and a photo ID.
The Texan company has disbursed just under $1bn in affordable auto loans across California and Texas.
This investment comes shortly after Tricolor released a new affiliate business Tricolor Insurance. The division leverages underwriting algorithms and scoring strategies to supply monthly premium insurance policies for vehicle owners. The FinTech will continue to grow this division alongside its financing business.
Tricolor CEO Daniel Chu said, “The deck is stacked against financially underserved customers in America when it comes to purchasing and financing a used vehicle.
“We have proven that the right infrastructure and culture make it possible to build a profitable business providing these customers with affordable access to high quality vehicles. This investment will allow us to deliberately expand our business in pursuit of a mission to impact and improve even more lives.”
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