The Series F funding round allows Octane to accelerate its market penetration and deepen its product offering, the company said in a Monday (Dec. 15) news release.
“Building on our strong foundation, this capital allows us to move more quickly on key initiatives that will further differentiate us in existing markets and speed up our entrance into new ones,” said Jason Guss, Octane’s co-founder and chief executive. “We’re grateful to our existing investors for their continued support and belief in our vision, as well as to new investors for their partnership. We look forward to strengthening these relationships as we expand our offerings and unlock the full potential of financial products for merchants and consumers.”
Launched in 2014, Octane said it has originated more $7 billion in loans through its in-house lender Roadrunner Financial, covering consumers who wish to purchase things like motorcycles, ATVs and snowmobiles.
This year, the release added, the company has launched a range of products and tech enhancements. This includes updates to its financing portal to “provide even faster, easier customer acquisition and closing processes for merchants,” while its customer portal offers “simplified payment options, expedited question resolution, and increased flexibility.”
As PYMNTS wrote earlier this year, simplicity is increasingly important for consumers dealing with lending platforms.
“Speed is becoming the defining feature of lending, and borrowers are setting the pace,” that report said. “With inflation pinching household budgets and emergencies around every corner, consumers no longer consider instant disbursements a perk or convenience. They expect them.”
In fact, PYMNTS added, borrowing payouts now lead all categories in instant disbursement use, with 45% of consumers saying they most frequently get their loan funds in real time.
The main reason? Urgency. According to research from PYMNTS Intelligence, 64% of consumers want instant lending payouts because of financial need. More than a quarter of these consumers say they require the funds in 30 minutes or less. Whether it’s funds for rent, groceries or an automotive repair, many borrowers can’t afford to wait.
“Financial institutions are responding,” the report added. “Eighty-six percent now see lending disbursements as a top use case for instant rails. The problem? Legacy systems and fragmented platforms are slowing delivery. While 57% of borrowers report being offered instant lending payouts, delays and friction remain widespread.”
