STAMFORD – The city-based fintech startup Tomo Mortgage that was co-founded by former Zillow executives in 2020 closed on a $20 million round of financing Tuesday, March 11 from Progressive Insurance, Ribbit Capital, NFX, and DST Global Partners. At the same time the company announced it is moving its headquarters to New York City.
The company is set to move from 2200 Atlantic St. in Stamford to 1411 Broadway in midtown Manhattan soon. The 28 Stamford employees will make the move to Manhattan, the company announced.
The latest round of Series B financing brings the AI (artificial intelligence)-based mortgage company’s total investment to date to $130 million.
Tomo will use the latest funding to support growth across its team and product offerings. The company is rapidly hiring loan officers and other mortgage professionals for its Detroit, Seattle and New York offices to meet the surge of new demand.
“While other mortgage lenders tout ‘automation,’ facilitated by way of call centers or outsourced service providers, Tomo is the real deal,” said Pete Flint, NFX general partner. “They’re taking a radically different approach, using proprietary technology to cut out origination fees and processing delays in a way that we’ve not seen in the industry so far.”
Tomo Co-founder and CEO Greg Schwartz touts his company’s high-tech business model as a reason for its success in the marketplace and the ability to raise venture capital.
“Outdated business practices, excessive fees, and over-inflated interest rates cost U.S. homebuyers billions of dollars every year. Tomo is on a mission to change that,” Schwartz said. “We use AI to deliver low rates without the ‘gotchas.’ No mystery fees. No missed closing dates. No ‘rate-keeping,’ where you have to talk to a salesperson before getting a price.”
Tomo claims it achieved 3.5-times growth in 2024 in the wake of a stagnant market and is on track to be one of the largest mortgage companies in the U.S. It operates in 31 states, including Washington, D.C.
