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Better Mortgage, an online lending startup, has closed a Series D round that values the company at roughly $4 billion, according to a source familiar with the matter.
The $200 million round was led by L Catterton—a private equity firm based in Greenwich, Connecticut—according to Bloomberg, which first reported the news. Ally Financial ALLY , American Express Ventures, Activant Capital, 9Yards Capital and Ping An also participated, the report said.
Founded in 2014 by Vishal Garg, Better markets itself as a quicker alternative to conventional mortgage lenders. It can offer pre-approval on a loan within minutes, though full approval can take days or longer. Better last raised funds roughly a year ago at a $600 million valuation.
The company has benefited from a wave of refinancings caused by rock-bottom interest rates and Covid-19. Investors are betting that the company can keep pace once the market inevitably slows down.
As it grows, Better is working to take a bigger bite out of the mortgage origination space. Rocket Mortgage, its much larger rival, went public in August, a deal that boosted the fortune of its founder, Dan Gilbert, by $33 billion. Forbes currently estimates Gilbert’s net worth at $45 billion.