SoftBank is Investing $500M into Better.com

Wall Street learned this week that SoftBank’s latest investment is going to be $500 million into digital mortgage lender Better.com. The company is valued at around $6 billion.

In the past year the residential real estate market has been flourishing and Better.com had reportedly extended $25 billion in loans last year and $14 billion in the first quarter of 2021 alone.

The company also reportedly generated profits last year and is expected to go public by the end of 2021.

The news of SoftBank’s investment was reported by The Wall Street Journal on Thursday and later confirmed to CNBC by sources familiar with the matter.

Better was ranked No. 15 on last year’s CNBC Disruptor 50 list. The valuation of around $6 billion is impressive considering this past November that number as around $4 billion.

New York-based Better.com was started in 2016 by Vishal Garg, a former analyst with Morgan Stanley. Garg had started the company after a deal to buy a house for his family fell through.

An all-cash buyer was able to beat the timing of his traditional mortgage lender, and that’s when Garg figured there had to be a better way. Instead of putting the down payment down on a house he decided to start Better.

The WSJ has reported that the company not only generated $800 million in revenue last year, but also profits, and is expected to go public by the end of 2021.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.