South Australian customer retention fintech Sherlok has raised $3.4 million to help mortgage brokers get better home loan deals for their clients.
The round was led by VC Rampersand, with participation from Investible and its Club Investible syndicate, supported by Paloma and Common Sense Ventures.
A pioneering use case of open banking from the three-year-old introduction of the Consumer Data Right (CDR), Sherlok is a mortgage repricing and refinancing platform using artificial intelligence (AI) to predict loan book churn and provide brokers with automated solutions for their clients,
The new capital will see the Adelaide startup continue ramp up its roll out in a partnership with leading aggregator AFG bringing Sherlok to its 3,700 brokers nationwide. The company has grown by 700% over the last year. Sherlok’s AI engine assesses data, including from the CDR, for better mortgage rates to reduce the risk of churn for mortgage providers and brokers, who service 70% of Australian borrowers.
Founder and CEO Adam Grocke said the next development being introduced on the platform is a single-click refinancing tool, which will reduce wait times for borrowers from 30 days to instant approval using open banking data.
“We’re presented with a very unique inflection point in the home loan industry, where data accessibility via open banking meets technological capability and extreme consumer demand for fast refinancing. Sherlok’s capital raise allows us to double down and capitalise on this moment to deliver on our commitment to securing the best possible deal for home owners with a single click,” he said.
“These homeowners are more under pressure than ever in the current market and their brokers are looking for better ways to serve them, retain them and refinance them. We’re about to enter a new era of home lending in Australia.”
Rampersand Principal Taryn Pieterse said Sherlok has built the platform that swings things back in the homeowner’s favour when it comes to a better mortgage
“We were impressed by Sherlok’s strong vision as a category creator, and their ability to deliver on strategic milestones with a small team,” she said.
“Before founding Sherlok, Adam was an award-winning broker for over a decade, and that insider knowledge shines through in their product. This technology is built for brokers, by brokers, with a deep understanding of retention strategy, and the single-click refinancing solution represents a major step forward.”