Tomo, a mortgage startup founded by former Zillow executives, has raised $20 million in new funding, bringing its total investment to $130 million. The company, which streamlines mortgage approvals through automation, continues to grow despite a sluggish housing market.
Tomo reported a 3.5x increase in gross revenue last year compared to 2023, along with substantial customer growth. This success comes despite U.S. home sales hitting 10-year lows in 2023 and 2024, according to Statista, following a peak in 2021.
Founded in October 2020 by Greg Schwartz and Carey Armstrong, Tomo positions itself as the “PayPal for the mortgage industry” by automating loan processes to make borrowing faster and more affordable. The company claims its platform helps homebuyers save $4,000 on average at closing, with interest rates 0.5% lower than industry averages.
Expansion Plans and Hiring Surge For Tomo Mortgage Platform
Tomo, which now has 94 employees, including 23 in Seattle, announced that it will relocate its headquarters to New York City, previously co-headquartered in Seattle and Stamford, Connecticut.
The newly secured Series B funding will be used to expand product offerings and aggressively hire mortgage professionals. Tomo is looking to grow its loan officer team in Detroit, Seattle, and New York to meet rising demand.
The latest funding round includes a new investment from Progressive Insurance, alongside continued support from Ribbit Capital, DST Global, and NFX.
Pete Flint, General Partner at NFX, highlighted Tomo’s unique approach to mortgage automation, stating that the company is eliminating origination fees and processing delays with proprietary technology, setting it apart from competitors.
Tomo competes with Valon Mortgage, Better Home & Finance, and other mortgage tech firms, but its focus on AI-driven efficiency could redefine the industry’s future.
