RenoFi Secures $22M Series B to Scale AI-Driven Renovation Financing Platform

New updates have been reported about RenoFi.

RenoFi has raised a $22 million Series B round led by real estate technology investor Fifth Wall, with strategic capital from Progressive Insurance and several credit unions, bringing total funding to $65 million. The financing validates RenoFi’s renovation-focused lending model and is intended to accelerate its AI-enabled platform that underwrites loans based on a home’s After-Renovation Value.

The company plans to use the capital to expand its profitable growth, including more than tripling its distributed retail sales team and deepening partnerships with credit unions and embedded finance platforms. RenoFi is building an orchestration layer for mortgage lending that combines modern credit evaluation with proprietary renovation underwriting to move toward near-real-time approvals.

Founded in 2018 and headquartered in Philadelphia, RenoFi partners with credit unions nationwide to offer a Renovation HELOC that uses projected post-renovation value instead of current home equity, targeting equity-light and recent homebuyers. Management reports that this approach can unlock roughly 11 times more borrowing capacity on average without requiring borrowers to refinance their existing first mortgage.

To date, RenoFi has facilitated more than 8,000 renovation loans, representing over $1.5 billion in funded volume and about $2 billion in project value analyzed through its platform. The company is licensed as a mortgage originator in 48 states and is attracting more than 10,000 new homeowners per month, positioning it as a one-stop shop for renovation-related financing.

Investors, including new backers HighSage Ventures, Alumni Ventures, Flintlock Capital, and Gaingels alongside existing firms such as Canaan and First Round Capital, see RenoFi as a focused vertical player in a $500 billion home improvement market. The business is benefiting from higher interest rates that discourage mortgage refinancing and increase demand for home equity solutions, particularly among borrowers with limited built-up equity.

RenoFi’s offering spans renovation-specific home equity loans, purchase and cash-out refinance products, construction and land loans, and investment property financing, all oriented around renovation use cases. Management expects the new funding to scale distribution, enhance its AI underwriting engine, and extend its lead as a specialized provider of ARV-based home equity products for both lenders and homeowners.