Revenue verification fintech Truework closes US$50mn Series C

Truework, a San Francisco-based fintech that provides income and employment verification to banks and lenders, has raised $50 million in Series C funding.

The fintech’s co-founder and CEO, Ryan Sandler, says the latest funding will be used to “continue our efforts to help clients grow their businesses through immediate, accessible and accurate consumer data”.

Truework is on track to provide more than 20,000 small businesses and 100 enterprises access to income and employment verifications for more than 12 million credit applications. It claims the verification platform uses “a waterfall approach” to provide lenders with multiple verification methods. The result is a process that reduces application friction, maximizes coverage and accelerates applications, says Truework.

The Series C round more than doubles the total amount raised to date, bringing Trueworks’ all-time funding to nearly $95 million following a Series B round in 2020. The Series C round was led by venture capital fund G Squared with participation from returning investors Sequoia Capital, Activant Capital and Khosla Ventures. New investors in this round include Indeed, Human Capital and Four Rivers Group.

“Lenders see the value that Truework brings”

“A lot has happened in the world since we announced our last fundraising round in spring 2020,” says Trueworks co-founder and CEO Ryan Sandler. “Since then, our team has shown incredible determination and an unstoppable commitment to helping our customers through the highs and lows that have defined the past two years.

“The growing demand in 2020’s housing market within the mortgage space meant that businesses needed more flexible solutions that could scale quickly and help improve verification efficiency. While 2022 has seen some slowdowns in the pace of demand, the need for automated income and employment verifications continues to increase. For consumer lenders, increasing competition combined with market uncertainty has driven demand for more robust and accurate data sets to build more robust underwriting models.

“More lenders are seeing the value Truework provides by reducing costs, automating the process and converting more borrowers to stand out among their peers. This has led to our expansion into consumer lending this year, serving clients such as Carvana, Octane and Figure. This resulted in also in the dramatic growth of the mortgage segment. Since Trueworks’ last funding round, our customers now include 20 of the top 25 mortgage lenders, such as Fairway Independent Mortgage, Caliber Home Loans, Guaranteed Rate, Citizens Bank and LoanDepot.”