The Canada-based company brings its home equity loan platform to Washington
Fraction, a Canada-based mortgage start-up backed by Capital One founders, has expanded its HELOC footprint in the US.
After seeing success in the Canadian market, the company launched its digital platform and flagship loan product in Washington State. Founded in 2018, Fraction offers a self-service mortgage platform and a signature HELOC (home equity line of credit) loan that allows homeowners to access the value locked in their homes with optional monthly payments.
“Fraction’s HELOC is the innovative and tech-forward loan option that American homeowners need to live and age well, giving them access to fairer alternatives for securing investment capital or solving the problem of being house rich but cash poor,” said Hayden James, CEO and co-founder of Fraction. “We’re excited to expand into the US, and Washington is an ideal first state for our rollout given its adjacency to the Canadian market.”
Read more: Fraction Technologies completes equity raise of $227 million
The launch comes on the heels of its $228million debt-equity funding and Series A financing round in 2021. The money will be used to fuel Fraction’s expansion into the US, and on product development, the start-up said in a statement. QED Investors, whose partners are the ex-founders of Capital One, led the round with participation from existing investors and other angel investors.
Fraction plans to launch in additional states by the end of the year.
“We want to make managing your home equity as seamless and easy as booking a stay on Airbnb, and we are very excited to have QED joining to help us do that,” James said. “In addition to expanding to the US, we are also building out an entirely new Loan Origination System (LOS) to be able to fundamentally improve upon the customer experience.”
