If you need to take out a loan, you know the number of documents involved in the approval process.
That’s a lot.
This process is tedious, time consuming, and often more manual than expected.
Ochlorus Is a startup that wants to change that with an automated platform that analyzes financial statements with 99% or better accuracy. To that end, a New York-based company today announced that it has raised $ 80 million in Series C funding for a mission to help lenders automate the underwriting process.
Fin VC rated the New York-based Ocrolus as “$ 500 million north” and led the funding to bring the total funding raised since its inception in 2014 to more than $ 100 million. Thomvest Ventures, Mubadala Ventures, Oak HC / FT, FinTech Collective, QED Investors, Bullpen Capital, ValueStream Ventures, Laconia, RiverPark Ventures, Stage II Capital and Cross River Bank also participated in the latest round.
The company is a company with a refreshing and transparent financial position. According to co-founder and CEO Sam Bobley, Ocrolus’ annual recurring revenue (ARR) increased from $ 1 million to $ 20 million between the first quarter of 2018 and the second quarter of 2021. We were able to win many well-known fintech customers such as Brex, Enova, LendingClub, PayPal, Plaid and SoFi.
And that’s done by spending about $ 10 million on total selling, marketing and marketing, Bobley said.
Now we are ready to chase after more traditional financial institutions. The startup plans to use its new capital to “more aggressively” build products for the mortgage and banking industries and expand its business in the United States.
Ocrolus analyzes financial documents by combining technologies such as OCR (Optical Character Recognition), machine learning / AI, and big data. But what makes it stand out is the Human-in-the-Loop (HITL) component, which is also used in document processing for greater accuracy, says Bobley.
In a nutshell, the company aims to help lenders make “faster data-driven decisions.” According to Bobley, the technology can classify financial statements, retrieve key data fields, detect fraud, and analyze cash flow. It is clear that the COVID-19 pandemic has brought digital acceleration in many industries, with financial services being the most affected. Prior to the pandemic, less than 1% of global loans were made online, Bobley said. However, since the outbreak of COVID-19, the demand for digital lending technology in traditional financial services companies has “dramatically accelerated”.
“Currently, COVID-19 is forced to evolve financial institutions, so all lenders and banks have no choice but to offer their clients online options,” he said.
FinVC’s managing general partner and founder Logan Allin agreed with fintechs Banks are similarly struggling with the “heap” of digital and paper documents in extracting financial data that needs to be processed and analyzed during the loan application process.
“Ocrolus has emerged as one of the pillars of the fintech ecosystem and uses OCR, AI / ML and big data / analytics to solve these challenges,” he wrote in an email. “Ocrolus believes that it is still in its infancy with respect to platform use cases and scope, and is excited about this unconstrained TAM.”
Ocrolus isn’t the only player in the field, but it’s fraud detection and compliance overlay capabilities, as well as customer-based analytics and benchmarking capabilities that help drive and highlight its growth. Allin is thinking.
Interestingly, Ocrolus has begun It aims to automate the long-term care Medicaid application process. We found that “high-paying professionals” scrutinized the document page by page and line by line.
“So we started investigating the problem, and what we learned was that the existing technology on the market was simply not accurate enough to be useful,” Bobley told TechCrunch. Leading tech companies such as Microsoft, Amazon, and Google offer OCR products, but Bobley says he’s having trouble reading text from PDFs and images, especially if the document is semi-structured or unstructured. Mr. says. It is also difficult for the machine to understand all the different formats.
“We wanted to create a new way to do this, and what we did was build a machine learning-based platform that also incorporates humans,” he said. “The goal is to be able to handle whatever documents are submitted, whether they’re Chase’s clean documents or blurry cell phone images from the Kansas Community Bank, with perfect accuracy. bottom.”
Whatever the solution can’t do automatically, it slices into smaller tasks and routes it to its own team of analysts and quality control specialists to perform data validation. The company then uses a series of algorithm checks to ensure that employees have done the right thing.
“Simply put, we’re returning fully structured digital data for every file we process,” says Bobley.
In about a year of the company’s life, the team realized that “rental is a much larger and more attractive market opportunity than Medicaid.”
“We really entered FinTech’s rental space in the right place and at the right time,” Bobley told TechCrunch.
By 2016, the company had launched an official product and was profitable.
“One of the benefits of our software is that it really helped FinTech lenders expand,” says Bobley. “Our product is, frankly, ten times better than doing it manually. After processing a loan instantly or in minutes, everyone else took hours or days. Sometimes people came to us, including large FinTech lenders, even if we didn’t even have a sales force. “
And for Bobley, startups don’t just speed up the loan process. It is also about financial inclusion.
“Our platform helps lenders automate underwriting and intelligently leverage cash flow and revenue data for credit scoring,” says Bobley. “By allowing lenders to analyze different sources of financial data more quickly, Ocrolus will level the competition for all borrowers and increase access to credit at a lower cost.”
The company will also continue to hire with new capital, led by machine learning and data science teams.Also scheduled to open Florida’s new data quality control facility caters to financial and government agencies with onshore data requirements.
Ocrolus lands $80M at a $500M+ valuation to automate document processing for fintechs and banks – TechCrunch Source link Ocrolus lands $80M at a $500M+ valuation to automate document processing for fintechs and banks – TechCrunch
The post Ocrolus lands $80M at a $500M+ valuation to automate document processing for fintechs and banks – TechCrunch appeared first on California News Times.