AI-powered Tomo Mortgage Raises $20M with Backing from Progressive Insurance®
After a year of explosive growth,Tomo, a fintech startup co-founded by former Zillow executives, now backed by Progressive Insurance, Ribbit Capital, NFX, and DST Global Partners
Tomo's 'low rates, no gotchas' uses AI to lower mortgage interest rates by 0.50%, saving the typical homebuyer $4,000 at closing
NEW YORK, March 11, 2025 /PRNewswire/ -- Tomo Mortgage, the fast-growing digital mortgage lender, today announced that it closed its $20 million Series B financing round, bringing its total investment to date to $130 million. In addition to new investor Progressive Insurance, existing investors Ribbit Capital, NFX, and DST Global Partners also participated in the latest round.
'Outdated business practices, excessive fees, and over-inflated interest rates cost U.S. homebuyers billions of dollars every year. Tomo is on a mission to change that,' explains Greg Schwartz, CEO and Co-Founder of Tomo. 'We use AI to deliver low rates without the gotchas. No mystery fees. No missed closing dates. No 'rate-keeping,' where you have to talk to a salesperson before getting a price. People love our honest, upfront pricing and seamless customer experience. We're thrilled our investors recognize our unique vision and value.'
Key to Tomo's success is its use of AI to streamline sales and underwriting processes. These tools make getting a mortgage much faster, more accurate, and far less expensive than at other mortgage lenders. Tomo saves the typical homebuyer $4,000 at closing and its interest rates are, on average, 0.50% lower than the industry and up to 1% lower than some of the biggest lenders. And this mix of transparency, simplicity, and cost-savings drives 4.9-star customer reviews on Bankrate, as well as their editor's pick of 'Best Online Mortgage Lenders in 2025.'
Despite a stagnant mortgage industry in 2024, Tomo achieved 3.5x growth and is on track to be one of the largest mortgage companies in the U.S. Now operating in 31 states, including D.C., Tomo's December 2024 purchase unit volume ranked in the top 10% of all mortgage lenders nationally.
Tomo will use the latest funding to support growth across its team and product offerings. The company is rapidly hiring loan officers and other mortgage professionals for its Detroit, Seattle and New York offices to meet the surge of new demand, and will be shifting its headquarters from Stamford, CT to New York City.
'While other mortgage lenders tout 'automation,' facilitated by way of call centers or outsourced service providers, Tomo is the real deal. They're taking a radically different approach, using proprietary technology to cut out origination fees and processing delays in a way that we've not seen in the industry so far. We're thrilled to back Tomo as they enter the next phase of their growth,' said Pete Flint, general partner at NFX.
'We're excited to invest in Tomo and to support their mission to modernize the home buying experience,' said Erwin Raeth, Corporate Development Leader at Progressive. 'Our forward-thinking approach and dedication to being there for our customers by understanding their specific needs aligns with Tomo's focus on innovation and helping each individual customer achieve their homeownership dreams.'
To learn more about Tomo, please visit https://tomo.com/.
About Tomo
Tomo is a digital mortgage company on a mission to get rid of the greed and complexity in lending, saving homebuyers thousands of dollars. Its continuous automation platform makes the lending process much faster, less frustrating, and far less expensive. By passing that savings on to the homebuyers, it's able to eliminate the excessive fees and over-inflated rates that cost U.S. homebuyers billions of dollars each year.
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