CMFG Ventures, the venture capital arm of Madison-based CUNA Mutual Group, which offers insurance services to credit unions, has made an undisclosed investment in a Washington, D.C.-area auto refinancing startup.
Auto refinance platform MotoRefi, which is based in Arlington, Virginia, recently closed on a Series A $8.6 million round of funding, which included investments from CMFG and was led by Boston’s Accomplice and Link Ventures. Other investors in the round included Motley Fool Ventures and Gaingels.
CMFG Ventures, which is also operated from Madison, makes investments of $1 million to $5 million in financial, insurance and data analytics companies. The investment in MotoRefi brings its active portfolio count to 16 companies, according to its website. Since December, the venture fund has also invested in a British financial analytics startup and San Francisco company Gabi, which developed an automated insurance shopping platform.
CUNA Mutual provides insurance products to more than 95% of U.S. credit unions. In 2018, CUNA Mutual reported managing assets of $20.6 billion and revenue of $3.7 billion.
MotoRefi allows customers to receive offers for auto refinancing, which if accepted, the company then pays off the old lender and retitles the car. The company claims it can save car owners an average of $100 per month.
The company notes that auto loan balances are over $1.2 trillion, and about 90 million Americans have auto loans.
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