Toronto-based mortgage fintech, Perch, has raised $4 million in Series A funding. The financing came from investors, including Second Century Ventures (which backed Hammock), the strategic venture arm of the National Association of REALTORS.
Scaleup and growth plans
With a mortgage funding rate 6x more efficient than the industry average, and a 215% customer referral rate, Perch will use the investment to continue scaling and growing its operations team. With year-over-year user growth of 130%, the fintech startup previously announced a seed round of $1 million in October 2021.
“Perch is on a mission to simplify homeownership. We enable first-time home buyers to get into the market sooner and help homeowners to build wealth efficiently by leveraging home equity.” said Alex Leduc, founder and CEO of Perch. “With over $100 million in funded mortgages to date and thousands of users that have already joined Perch, this is clear evidence we’re on the right track. As we continue growing, our employees, investors and partners are all key to our success.”
“Housing affordability and rising rates have been a major barrier to home ownership for Canadians and our real estate agents,” said Tyler Thompson, Managing Partner of Second Century Ventures. “We believe in Perch’s ability to continue improving on the existing process and product to ultimately create more solutions for borrowers and real estate agents that we know are needed in today’s market.”
“Innovation in the mortgage industry is long overdue,” said John Richardson, CEO of B.E.S.T. Funds. “By automating the mortgage broker process, Perch is well positioned to add efficiency and greater transparency for borrowers looking to find the right mortgage.”
Perch was founded in 2018 by CEO Alex Leduc, who previously worked in corporate finance and analytics for several publicly-traded mortgage companies. Perch gives Canadians access to insights about their financial data, to enable them to make informed decisions about when they’re ready to buy. It helps buyers and homeowners make data-driven decisions about their mortgages and real estate.
Perch simplifies homeownership by skipping the sales pitch. One can compare thousands of mortgages from over 30 lenders all online in a few clicks, and get pre-approved in as little as 20 minutes. Mortgage approvals take place in less than 48 hours. In addition, Perch provides automated real estate insights, wherein homeowners can view monthly property value estimates and switch savings opportunities on their mortgage right from their Perch account.
Perch currently operates in all provinces and territories across Canada.