Car loan startup Caribou hits unicorn status
Caribou, an auto loan and re-financing startup, raised $115 million in Series C funding, valuing it at $1.1 billion.
Why it matters: The fundraise and unicorn status comes amid a surge in car prices driven by supply chain disruptions and a host of other factors.
- In the last year, new car prices rose by 13.2% — used car prices by over 22.7% —a spike that is among the contributing factors to the highest inflation data in 40 years. (The market is also boosting margins on car loans for major lenders.)
Of note: Used car prices have begun to show signs of letting up lately. Meanwhile, delinquencies of subprime car loans hit a record in February, per Equifax.Details: Caribou, which had its start in auto refinancing, links car owners with lenders.
- Goldman Sachs Asset Management led the round, and investors who joined included Innovius Capital and Harmonic.