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Mortgage startup Habito in talks to save future at tough valuation | Business newsletter



Habito, one of the UK’s most prominent homebuying startups, is in advanced talks to secure rescue funding at a plummeting valuation, reflecting the difficulties facing fintech firms .

Sky News has learned that Habito, which launched in 2016, is close to gaining approval for a funding round believed to be worth more than £5 million from existing investors.

Sources said Friday that the new funding will likely be at a low nominal money valuation in the millions of single-digit dollars.

Habito shareholders include Atomico, listed investment firm Augmentum Fintech, Mosaic Ventures and Ribbit Capital.

The company has previously attracted at least £60m of investment since its launch, with a £35m Series C round announced two years ago.

The rescue fundraiser comes after the collapse of merger talks between Habito and London & Country Mortgages, a privately held company.

Last week, FT Adviser reported that Habito is cutting dozens of mortgage broker roles as it looks to cut costs.

An insider says that if completed, the new funding will allow the company to rebuild its valuation over time, even as mortgage costs rise as the Bank of England’s prime rate increases. increased this week.

Habito gained attention when it launched a 40-year home loan product last year, but was later criticized by the advertising watchdog for claims it made in its advertising. mine.

In response to a question from Sky News, a Habito spokesperson said: “Despite challenging market conditions for technology and fintech companies more specifically, Habito is in the process of closing a new round of funding. best.

“We cannot comment on the specifics of the deal, nor can we confirm that Habito’s valuation remains commercially sensitive.

“However, we can confirm that our future plans are focused on achieving profitability, and we look forward to sharing more about that in the coming weeks.

“In the meantime, we continue to go ahead with our plan and deliver stellar customer service to homeowners and mortgage holders who will face the highest interest rates in nearly a generation, and The cost of living is on the rise.”

Habito’s drop in valuation reflects the growing trend many technology companies are facing as global economic trends evolve.



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