Tomo mortgage, a startup founded by former Zillow executives, has secured $20 million in fresh funding to accelerate its mission of streamlining home loan approvals. The company, which has now raised a total of $130 million, continues to experience rapid growth despite a cooling real estate market.
Despite U.S. home sales plummeting to 10-year lows in 2023 and 2024, Tomo reported a 3.5x increase in gross revenue compared to the previous year. The company also saw a significant rise in customer acquisition, proving its ability to thrive even in a challenging market.
Tomo: The ‘PayPal of Mortgage Lending’
Founded in October 2020 by Greg Schwartz and Carey Armstrong, Tomo is on a mission to simplify mortgage approvals. The company has developed an automated lending platform that speeds up the borrowing process while reducing costs. Tomo claims its technology helps homebuyers save an average of $4,000 at closing and offers interest rates 0.5% lower than the industry standard.
Tomo currently has 94 employees, including 23 team members based in Seattle. While initially co-headquartered in Seattle and Stamford, Connecticut, the company officially announced New York City as its new headquarters on Tuesday.
With the latest funding, Tomo plans to expand its product offerings and aggressively hire mortgage professionals. The company is actively recruiting loan officers and mortgage specialists for its Detroit, Seattle, and New York offices to keep up with growing demand.
Who’s Investing in Tomo?
The Series B funding round attracted new and existing investors, including:
- Progressive Insurance (new backer)
- Ribbit Capital
- DST Global
- NFX
A ‘Radical’ Approach to Mortgage Automation
Tomo is setting itself apart in the competitive mortgage industry. Pete Flint, general partner at NFX, praised Tomo’s innovative strategy, stating:
“Tomo is taking a radically different approach, using proprietary technology to eliminate origination fees and processing delays in a way the industry hasn’t seen before.”
Tomo is up against major mortgage tech players, including Valon Mortgage, Better Home & Finance, and others. However, its focus on speed, lower costs, and automation gives it a unique edge in the race to modernize home financing.
With its latest investment, growing team, and cutting-edge technology, Tomo is poised to reshape the mortgage landscape in 2025 and beyond.
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