Income verification platform Truework raised $50 million in Series C funding to develop products that will advance digitizing the verification process for banks and lenders.
Venture capital firm G squared led the funding round, which also included participation from returning investors Sequoia Capital, Activant Capital and Khosla Ventures. Indeed, Human Capital and Four Rivers Group participated as new investors.
“With access to over 35 million (and counting) U.S. employee records, Truework enables lenders to convert more borrowers and make faster credit decisions with verified income,” said Ryan Sandler, CEO of Truework. “Series C funding will help us further empower both sides of the verification equation and help build a more efficient, secure, and stable credit system.”
The the housing market has slowed down, the need for automated income and employment verification is increasing, Sandler said in a recent blog post.
“For consumer lenders, increasing competition paired with market uncertainty has driven demand for more robust and accurate data sets to build more resilient underwriting models.”
Founded in 2017 and headquartered in San Francisco, California, Truework partners with payroll providers such as Gusto, Zenefits and BambooHR to verify and approve borrowers with its application programming interface (API).
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After consumer consents for a background check, Truework sources the borrower’s place of employment and salary details. When a third party wants to verify that information for the person in question, it uses Truework, rather than contacting the company directly.
Truework connects consumers to more than 17,000 lenders including local credit unions to large banks, increasing applicant conversion by up to 14% and reducing verification cost per loan by 60%, the firm said. The fintech’s mortgage consumers include top 25 lenders, such as Fairway Independent Mortgage, Caliber and loanDepot. Truework expects to process more than 12 million income and employment requests in 2022.
Previously, the firm raised about $45 million, including a $30 million funding in 2020. The Series B funding, led by venture capital Activant Capital, was used to expand its business and add details to the identity information that it shares.
