Better.com Receives $750M Cash Infusion from SPAC Backers

Better.com Receives Accelerated Funding

Better.com, a digital mortgage lender preparing to go public through a special purpose acquisition company (SPAC), is receiving a cash injection from its investors ahead of schedule.

Aurora Acquisition Corp. and SoftBank have revised their financing agreement to provide Better with 50% of the initially committed $1.5 billion immediately, rather than waiting for the completion of the SPAC merger.

Increased Capital Availability

Individuals with knowledge of the transaction, requesting anonymity, revealed to TechCrunch that this revised arrangement will bolster the company’s financial standing. Capital will now be reflected on the balance sheet sooner than anticipated.

According to an internal email from Better CFO Kevin Ryan, obtained by TechCrunch, the company is projected to have $1 billion in available funds by the end of the current week.

Ryan communicated to employees that the amended agreement supersedes the previous plan. The prior arrangement stipulated that $950 million of the $1.78 billion in committed financing from Aurora and SoftBank would have been allocated to repurchase existing shares from Better’s stockholders.

Valuation Remains Consistent

Despite the changes to the financing terms, Better’s valuation remains at $6.9 billion, according to company statements.

Strategic Use of Funds

A company spokesperson explained to TechCrunch that the additional capital will be used to strengthen existing business operations. The focus will be on enhancing the home purchase experience and introducing new products and services.

Specifically, Better aims to improve the post-closing homeownership experience for its customers.

Expansion of Product Offerings

Having recently integrated several new insurance products, Better intends to broaden its portfolio further. Plans include expanding into areas such as personal loans, student loans, and life insurance.

SPAC Route Justification

CEO Vishal Garg stated in September that the decision to pursue a public listing via a SPAC was driven by the assurance of execution offered by SoftBank through the blank-check deal, as opposed to a traditional initial public offering (IPO).

Note: This article was updated after initial publication to accurately reflect the infusion amount. TechCrunch also reported on the company’s planned layoffs on December 1st.