Vero Technologies – a wholesale financing technology and loan servicing platform – recently announced the closing of its $8.5 million Series A funding round. Led by venture capital fund BankTech Ventures, Vero received significant investment from Sopra Steria Ventures and other notable fintech investors like Arcadia Funds, Antler, AAF Management, and the Independent Community Bankers of America. Vero will use the capital to accelerate the growth of its lending-as-a-service (LAAS) offering, giving banks a digital solution for the financial processes that stand in the way of their expansion in the wholesale financing space.
Manufactured goods dealers like auto, powersports and agricultural equipment dealers need capital to acquire inventory from manufacturers and suppliers. And historically, banks have been unable to offer this form of wholesale – or “floor plan” – financing due to complexities with originating, servicing and monitoring dealers. Plus, Vero Technologies’ lending-as-a-service platform streamlines these processes so that banks can extend wholesale financing to dealers in their local communities–all without overhauling existing systems or adding specialized headcount.
The platform utilizes open banking technology to offer end-to-end loan lifecycle management to its current user base of community and regional banks across the country. And its capabilities span everything from underwriting, loan servicing and digital auditing to real-time inventory, risk management and financial analytics. So banks can profitably introduce wholesale financing, while providing dealers lower cost of funds and enhancing operational efficiencies. This platform also includes dealer and supplier-facing tools to eliminate unnecessary manual interactions.
For dealers and manufacturers with limited options for wholesale financing, Vero’s solution represents a differentiated value proposition. And through Vero, these dealers now have access to lower-cost funds through their preferred financial services partners, ensuring that dealers can consolidate their financial resources and drive business growth.
Vero Technologies and Sopra Banking Software (part of the Sopra Steria Group) are working on a commercial partnership that will make Vero’s technology available to the wider wholesale finance market with similar large-scale financing ambitions.
“We’ve been fortunate to build a viable product and achieve initial market penetration with minimal funding to date. Now, as we set out to expand, we’re pleased to do so in partnership with BankTech Ventures, Sopra Steria Ventures and other strategic investors who share our vision of providing banks with a bespoke solution for wholesale finance. This investment will enable us to build our growing footprint with community and regional banks across the country and enhance our platform’s capabilities.”
— John Mizzi, CEO of Vero Technologies
“We are excited to lead the Series A funding round for Vero. Their commitment to driving innovation within community banking aligns perfectly with BankTech’s mission to expand community bank capabilities. We believe Vero has tremendous potential to transform the inventory financing landscape and create significant value for dealers and lenders alike.”
— Carey Ransom, Managing Director of BankTech Ventures