TrueWork, a company that builds technology for mortgage and consumer-centric lenders to instantly verify borrowers’ income and employment, has raised $50 million in a Series C round of funding led by G Square.
In the year Founded in 2017, San Francisco-based TrueWork integrates with payroll providers including Gusto, Zenefits, and BambooHR to enable mortgage providers and lenders (e.g., automotive, personal loans, and student finance) to quickly verify and approve borrowers in their own apps using TrueWork’s APIs. . The company supports background checks for employers and staffing companies looking to verify new hires.
TruWork estimates it will generate more than 12 million in income and employment confirmations this year.
A large part of the Trueworks platform supports so-called “quick verifications”, which sometimes isn’t always possible depending on the individual’s personal work history and status, meaning the lender must collect and return paperwork. Documents. As a result, TrueWork recently launched a new tool called TrueWork Documents, which converts physical documents that users have digitally uploaded into structured data, making it easier to assess the risk of fraud.
Truework’s increase comes as consumer lending continues to increase in the US, with vehicle loans driving a significant portion of that. On the flip side, mortgage demand recently hit a 20-year low after peaking in 2020, but Truework founder and CEO Ryan Sandler predicts the need for automated approvals is only going up.
“In the 2020s, the housing market’s increasing demand in the mortgage space means businesses will need flexible solutions that can scale quickly and help improve verification efficiency,” Sandler wrote in a blog post. In 2022, there is some slowdown in the pace of demand, with the importance of automatic income and job verification becoming increasingly important. For consumer lenders, increased competition combined with market volatility has led to more robust and accurate data sets to build more robust underwriting models.
There has been widespread activity in the area of income verification of late. Pinwheel announced a $50 million funding round in Januarywhile Argyle attracted $55 million in March. And the current economic situation seems to be playing more than a small part in this trend. Spencer McLeod of G Squad press release.
TrueWork, on the other hand, has raised around $45 million, including $30 million raised two years ago. With another $50 million in the bank, the company plans to bolster its product development and headcount.
In addition to lead backer G Squad, Truework’s Series C round included investments from Sequoia Capital, Active Capital, Hosla Ventures, True Human Capital and Four Rivers Group.