Vero Technologies, a wholesale financing technology and loan-servicing platform, closed a $8.5 million Series A funding round led by venture capital fund BankTech Ventures. Vero received significant investment from Sopra Steria Ventures and other fin-tech investors, including Arcadia Funds, Antler Global, AAF, and the Independent Community Bankers Association. Vero said it will use the capital to accelerate the growth of its lending-as-a-service offering, giving banks a digital solution to the financial processes that stand in the way of their expansion in the wholesale financing space.
Manufactured goods dealers, such as auto, powersports and agricultural equipment dealers, need capital to acquire inventory from manufacturers and suppliers. Historically, banks have been unable to offer the form of wholesale–or “floor plan”–financing due to complexities with originating, servicing and monitoring dealers. Vero Technologies’ lending-as-a-service platform streamlines the 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 leverages open banking technology to offer end-to-end loan lifecycle management to its user base of community and regional banks across the country. Its capabilities span everything from underwriting, loan servicing and digital auditing to real-time inventory, risk management and financial analytics. As a result, banks can profitably introduce wholesale financing while achieving lower cost of funds and enhancing operational efficiencies. The platform also includes dealer and supplier-facing tools to eliminate unnecessary manual interactions.
“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," said Vero Technologies CEO John Mizzi. "This investment will enable us to build our growing footprint with community banks across the country and enhance our platform's capabilities."
For dealers with limited options for wholesale financing, Vero's solution represents a differentiated value proposition. Through Vero, those 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.
"We are excited to lead the Series A funding round for Vero," said Carey Ransom, managing director of BankTech Ventures. "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."
Vero Technologies and Sopra Steria Group, which owns Sopra Steria Ventures and Sopra Banking Software, are additionally working on a commercial product that will make Vero’s technology available to the wider wholesale finance market with similar large-scale wholesale financing ambitions.
Originally posted on Auto Dealer Today