Truework, a company that offers technology to help mortgage and consumer-focused lenders verify the income and employment of borrowers, has raised $50 million in a series C round of funding led by G Squared.
The raise comes as consumer borrowing continues to surge in the U.S., with vehicle loans in particular seemingly driving a significant part of that.
Founded in 2017, San Francisco-based Truework integrates with payroll providers including Gusto, Zenefits, and BambooHR, and enables mortgage providers and lenders (e.g. automotive, personal loans, and student financing) to verify and approve borrowers quickly within their own applications using Truework’s APIs. The company also supports background checks for employers and staffing companies seeking to verify potential new hires.
Truework estimates that it will power in excess of 12 million income and employment verifications this year.
While a large part of the Trueworks platform is about supporting so-called “instant verifications,” sometimes it’s not always possible to do so, depending on the individual’s personal employment history and status, meaning that a lender has to revert to collecting paper payslips and documents. As such, Truework recently rolled out a new tool called Truework Documents, which transforms physical documents that a user has uploaded digitally into structured data to make it easier to assess for fraud risk.
Market uncertainty
There has been a flurry of activity in the income verification space of late, with Pinwheel announcing $50 million in funding back in January, while Argyle attracted $55 million in March. And the current economic environment, it seems, is playing a sizeable role in this trend. “Rising rates and market uncertainty are catalyzing lenders to optimize their approval process,” G Squared partner Spencer McLeod said in a press release.
Truework, for its part, had previously raised around $45 million, including a $30 million tranche two years ago. With another $50 million in the bank, the company said that it plans to bolster its product development and headcount.
Aside from lead investor G Squared, Truework’s series C round included participation from Sequoia Capital, Activant Capital, Khosla Ventures, Indeed, Human Capital, and Four Rivers Group.
