Auto loan refinancer Caribou joins unicorn club

Caribou, which helps consumers save money on auto loans, has joined the unicorn club after the close of an oversubscribed Series C round, which closed on $115m.

The funding round, which values Caribou at $1.1bn, was led by Goldman Sachs Asset Management. Other participants include Innovius Capital and Harmonic, as well as existing backers Accomplice, CMFG Ventures, Curql Fund, Firebolt Ventures, Gaingels, Moderne Ventures and Motley Fool Ventures.

With the capital, the company hopes to invest into its platform and new products, as well expand its team.

Caribou, which was formerly known as MotoRefi, aims to male auto loan and insurance processes simple and transparent. Through partnerships with lenders, it offers lower monthly payments that save customers an average of $100 each month on their car payments through refinance.

During its lifetime, Caribou has refinanced over $1.5bn in loans, which it claims has saved customers over $100m in total interest over.

In addition to auto loan refinancing, the company helps users compare car insurance policies from a range of carriers.

Jade Mandel, vice president within the Growth Equity business within Goldman Sachs Asset Management, said, “Caribou is building an important company with a great culture that helps consumers and lenders in an enormous market. That’s why we’re thrilled to be doubling down on our initial investment by leading Caribou’s Series C funding round.

“In a few short years, Caribou has established itself as the industry leader in auto FinTech, already having saved customers more than $100 million on their car payments. We’re excited about the launch of its digital insurance marketplace and we can’t wait for what’s next.”

The company previously raised $50m in its Series B funding round in 2021, split across to tranches. The first was a $45m investment in June, followed by a $5m extension in August.

Caribou has raised a total of $190m since it was founded in 2016.

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