AutoFi, which lets consumers get an auto loan online, seeks new funding: sources

AutoFi Inc, a provider of technology to speed auto financing, is looking to raise a new round of funding, three sources said.

The San Francisco startup is seeking around $10 million to $20 million, sources said. The round is expected to include VCs and some strategics, one person said.

Founded in 2015, AutoFi offers a finance platform that lets consumers apply for and close auto loans online. Financing decisions average around 30 seconds or less, AutoFi says.

In May, AutoFi collected $17 million in a round led by Crosslink Capital. Lerer Hippeau Ventures, Bruce Toll, the founder of Toll Brothers, and other investors, took part. The company raised a $2.5 million seed round in 2015, Crunchbase reports.

Ford Motor Credit in January also invested in AutoFi. Terms weren’t disclosed.

A Harris Poll in 2016 found 87 percent of Americans said they disliked shopping at traditional car dealerships.

More than half, 56 percent, of those aged 18 to 34 said they’d rather clean their homes than deal with a car-sales person. Thirty-four percent said they would prefer to wait in line at the DMV, while nearly a quarter, or 24 percent, of those aged 35 to 44 said they would rather get a root canal than have to negotiate with a car dealer. The survey questioned 2,135 U.S. adults aged 18 or more.

AutoFi “has done a really impressive job creating a new online financing option in a space that really needs it,” a second of the three sources said.

Executives for AutoFi, Crosslink and Lerer Hippeau could not be reached for comment.

Action Item: Contact CEO Kevin Singerman +1 888-447-9360

Raj Nair, EVP for product development and chief technical officer for Ford, announces the line of 2017 Ford Fusion cars at the North American International Auto Show in Detroit, on Jan. 11, 2016. Photo courtesy Reuters/Mark Blinch