Polly Raises $37M Series B to Automate Mortgage Workflows

Polly Secures $37 Million in Series B Funding

Polly, a software-as-a-service (SaaS) company focused on modernizing mortgage capital markets, has announced the completion of a $37 million Series B funding round. Menlo Ventures spearheaded the investment.

New and Existing Investors Participate

The funding round saw participation from new investors including Movement Mortgage, First American Financial, and FinVC. Existing investors, namely 8VC, Khosla Ventures, and Fifth Wall, also contributed to this financing. This latest investment brings the total funding raised by the San Francisco-based company to $50 million.

Significant Customer Growth

Adam Carmel, Polly’s founder and CEO, stated that the company has experienced nearly a threefold increase in its customer base over the last year. This growth includes securing contracts with multiple lenders ranked among the top 100 in the nation.

Addressing a Need for Digital Transformation

Founded in 2019, Polly was established on the belief that the mortgage industry lags behind others in adopting digital solutions. Carmel observed that the sector continues to rely on outdated, costly, and inefficient processes.

Empowering Data-Driven Decisions

Polly’s core mission is to revolutionize how lenders and loan purchasers operate by enabling data-driven decision-making. The company’s software is specifically designed to automate workflows and enhance efficiency throughout the entire loan lifecycle – from rate lock to loan sale and delivery, as Carmel explained.

Founder’s Prior Experience

Prior to Polly, Carmel founded Ethos Lending, which was acquired by Fenway Summers in 2014. This previous experience highlighted significant gaps in the market for automating lender workflows.

Market Validation and Acquisition Activity

The demand for such solutions is evident in the broader market. For instance, Optimal Blue, a competitor in the same space, was acquired by Black Knight in 2020 for $1.8 billion, demonstrating the value of data and analytics capabilities within the mortgage industry.

Creating a New Market Category

Carmel believes Polly is pioneering a new category within the mortgage sector – capital markets. The company is focused on building a fully integrated software platform to streamline workflows for mortgage companies.

A Vision for Personalized Mortgages

“My vision is that consumers will eventually expect a digital experience, coupled with mortgage products, loans, and pricing tailored to their individual needs,” Carmel shared with TechCrunch. He emphasized the importance of delivering customized solutions.

Dynamic Loan Configuration

To achieve this, Polly is dedicated to enabling its customers to configure loans with a high degree of flexibility and dynamism.

Increased Profitability and Efficiency

The ultimate goal, according to Carmel, is to help lenders offer lower mortgage rates to consumers while simultaneously increasing their own profitability. This involves transitioning away from traditional methods like spreadsheets, phone calls, and email, and embracing cloud-based solutions. Polly aims to become a system of record for its customers.

Multi-Dimensional Loan Configuration

The company’s technology allows for loan configuration based on numerous factors and variables.

Future Plans: Product Development and Expansion

Having primarily focused on product development in 2021, Polly intends to allocate its new capital towards strengthening its go-to-market strategy. This includes expanding its product and engineering teams and investing in artificial intelligence (AI) and machine learning technologies.

Exciting Growth Ahead

“The next year or two will be a very exciting period for us,” Carmel stated, expressing optimism about the opportunity to transform the mortgage market.

Menlo Ventures’ Perspective

Tyler Sosin, a partner at Menlo Ventures and now a member of Polly’s board of directors, believes the company is challenging established players with outdated systems. He highlighted Polly’s impressive growth and its ability to attract customers.

Early Interest from Menlo Ventures

Sosin revealed that Menlo Ventures had initially considered leading Polly’s Series A round but was slightly delayed in their approach. Despite this, the firm participated in the round with a smaller investment and maintained close contact with the company.

Confidence in Polly’s Evolution

“We’ve observed Adam’s progress and witnessed the evolution of the customers, the product, and the team, which led us to lead this round,” Sosin explained to TechCrunch.