A leading online platform for digital auto sales and financing has scored a major cash infusion from investors and broadened its relationship with one of the world’s top auto finance companies as more dealers and consumers look to streamline the process and operate more efficiently.
San Francisco-based AutoFi announced Monday it closed an $85 million funding round boosting its total valuation at almost $700 million. AutoFi CEO and co-founder Kevin Singerman told Forbes.com that’s the biggest cash infusion in the company’s almost seven year history.
AutoFi is in the midst of a four-year streak of 100% revenue growth, doubling the size of its staff in 2021 to 220 employees, processing more than one million auto finance requests that resulted in more than $3 billion in vehicle sales last year, according to the company.
Singerman said he expects over the next two-year period AutoFi will triple its size as demand for its online finance and sales tools grows.
This latest injection of funding will not only help finance that growth, but Singerman said it will also provide AutoFi with “independence” as it deals with its many partners that include dealers, finance companies, automakers and customers.
Kevin Singerman, co-founder, CEO AutoFi
AutoFi
“It allows us to focus on one thing and do it exceptionally well and because we’re working in an ecosystem where there are hundreds, if not thousands, of different partners it’s so important we build a company that plays well with everyone in the sand box,” said Singerman in an interview. “The hard part is you take what they do in the normal offline world and bring it online in a way that works for them and their business model. I think preserving that independence and this capital really helps us solidify that.”
Santander Holdings USA,Inc., SVB Financial Group, the parent of Silicon Valley Bank, and Crosslink Capital all participated in this funding round for AutoFi.
Santander and AutoFi have had a relationship for about four years according to Singerman. In conjunction with the funding announcement, Santander said that bond is becoming stronger.
In a separate news release Santander Consumer USA Inc., (SC) a wholly owned subsidiary of Santander Holdings USA, Inc. announced the expansion of its partnership with AutoFi to nationally launch SC’s end-to-end digital car buying experience.
“Our new digital product suite will connect dealers, consumers and vehicles more effectively than ever before. By personalizing and streamlining the car buying process, everyone wins. Shoppers see exactly what they can purchase, and dealers can self-service each deal to meet the needs of their customers,” said Santander Consumer USA President and CEO, Mahesh Aditya in the release.
Singerman explained Santander is one of the biggest auto finance companies in the world and has been one of the finance options AutoFi has offered its customers. The company approached AutoFi when it decided to improve its own online services.
“They came to us and said we want to think about how to transform ourselves as an auto lender to support these new…ecommerce experiences and removing friction from the finance process,” Singerman said.
AutoFi Consumer Experience where vehicle shoppers can search for, compare and sign up for financing.
AutoFi
Indeed, removing the “friction” from what can be an hours-long process to purchase and finance a vehicle is the where the business has to go, Singerman said. AutoFi’s platform attempts to do that by integratingthe online, remote and in-store automotive sales experience so a customer can secure credit approvals and a firm financing offer from AutoFi’s network of lenders.
While the move to a more digital business model for dealers and lenders was already underway for several years, it was vastly accelerated once the Covid-19 pandemic took hold two years ago as health concerns closed showrooms and deals were done remotely.
Now, as the pandemic begins to ebb, showroom traffic is returning, especially with customers who prefer to complete some or all of the process in-person. The key to success, says Singerman, is to use technology to “empower” the consumer to provide a “joyous” experience regardless of how he or she wishes to purchase a vehicle.
It’s simple, he said. “Empowerment and joyous versus disconnect.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
