FinLocker raises $17 million in Series B round

Financial fitness app provider FinLocker has completed a $17 million Series B fundraising round, which included attracting an investment from mortgage insurer holding company Radian Group.

Radian was the only named participant in the round, with the others identified in the FinLocker press release as existing shareholders.

"This new capital infusion will fuel our efforts to expand our reach within the mortgage ecosystem and beyond as we continue to empower individuals on their journey towards homeownership and financial well-being," said Harry Cason, FinLocker CEO, in a press release.

FinLocker is integrating Radian's Homegenius real estate search and valuation technology into its homeownership app to help consumers make smarter home buying decisions, it added.

In October 2020, FinLocker completed a Series A round that raised $19.8 million according to Crunchbase. Cultivation Capital was the lead investor, with Cliff Holekamp, co-founder, managing director and general partner also listed as an individual investor.

Other Series A participants were TransUnion, SixThirty and C9 Capital. Investors in FinLocker prior to the Series A besides Cultivation Capital were St. Louis Arch Angels, Alumni Ventures and Bascom Ventures.

"Inventory and affordability challenges have extended the home buying readiness journey, especially for first-time homebuyers," said Brian Vieaux, president and chief operating officer of FinLocker, in the latest press release. "Mortgage originators need to be able to nurture prospective homebuyers for longer and stay connected with their past clients so they'll be top-of-mind when rates drop to refinance or purchase another home."

Radian did not disclose the terms of its investment, but added that it announced the transaction previously in a January press release.

The FinLocker investment "helps us further our commitment to ensuring the American dream of homeownership responsibly and sustainably through products and services that span the mortgage and real estate spectrum, while also deepening relationships with its customers by introducing them to unique and relevant solutions to help build their businesses," Radian said in a statement.

Radian is always looking to invest in companies that "help us deliver on our strategic focus of sustainable and affordable homeownership through products and services," the press release stated, citing the example of Covered Insurance Solutions, an independent digital insurance agency, in which it invested in February 2020.

"This collaboration with Radian marks a significant milestone in our mission to empower the next generation of mortgage advisors. Our partnership will enhance our capabilities as a trusted source of financial preparation, paving the way for aspiring homebuyers to make informed decisions along their homeownership journey," Vieaux said in the January press release.