Darien-based private equity firm leads $32M investment in real estate tech firm

A group of southwestern Connecticut investors has led a $32 million investment in a home-lending technology firm.

Darien-based private equity firm Ten Coves Capital, which announced its launch last month, led the Series C funding in San Francisco-based Roostify. It was joined by principals of private equity firm Stone Point Capital, which has offices in Greenwich. The firms did not disclose the specific amounts that they invested.

Returning investors included Point72 Ventures, the venture capital firm founded by Steven Cohen, who is the head of Stamford-based hedge fund Point72 Asset Management.

“The opportunity to re-design the future of home lending through technology cannot be overstated, as the mortgage lending industry has been relatively slow to embrace digital technologies,” Dan Kittredge, managing partner at Ten Coves Capital, said in a statement. “Roostify is well-positioned to accelerate the digitization of home lending infrastructure, and we are excited to partner with the Roostify team to help them power this market transformation.”

With the new financing, Roostify has raised a total of $65 million in capital. Roostify officials said that they intended to use the funding to leverage artificial intelligence to simplify the home buying experience and grow its staff by 50 percent.

Amid a surge in home buying sparked by the coronavirus crisis, Roostify has forged major growth in the past year. In 2020, it managed a 250 percent increase in its overall platform volume. Today, it supports more than 200 lending institutions and handles about $50 billion in monthly loan volume. Its clients include large enterprise banks and independent brokerages.

“Having easy access to meaningful digital tools is key to helping lenders thrive in a digital-first world,” Roostify CEO Rajesh Bhat said in a statement. “That’s why we are hyper-focused on perfecting and digitalizing the entire home buying journey from beginning to close. We design meaningful, end-to-end solutions that solve the complex challenges leading home lending institutions face on a daily basis. With this capital infusion, we will accelerate our vision of simplifying home lending without compromising on quality and time-to-market.”

Connecticut investment firms have been involved in a number of other major transactions in recent weeks. Among other recent transactions, Point72 Ventures announced last week that it was co-leading a $7 million investment in Swapp, a construction-planning technology firm.

pschott@stamfordadvocate.com; Twitter: @paulschott