Vero pulls in $8.5 million for wholesale financing technology

Vero Technologies secured $8.5 million in new financing for its wholesale financing technology and loan servicing platform — technology designed for auto retailers and other businesses.

BankTech Ventures led the round, though Sopra Steria Ventures, Arcadia Funds, Antler, AAF Management, the Independent Community Bankers of America and other fintech investors also participated, according to the funding announcement.

In addition to auto finance, Vero is targeting sectors such as powersports and agricultural equipment dealers. But it has a strong connection to auto finance through investor Sopra Steria Ventures. Sopra Steria is the parent company of Sopra Banking Software, whose technology enables captive financing programs in more than 50 countries for auto manufacturers, including Mercedes-Benz, Toyota, BMW, Nissan and Volvo, according to a Vero spokesperson. Sopra Banking Software also works with banks and independent lenders including Santander, TD Auto Finance, Lloyds Bank and Standard Bank on their wholesale financing, the spokesperson added.

Vero, of New York, built its product and has begun "achieving initial market penetration" without much prior funding, CEO John Mizzi said in a statement. It incorporated in October 2020 and launched its lending program in May 2021.

With money in hand, Vero will work to expand its footprint with community banks nationally and beef up the platform's capabilities, he added.

"We are only focused on the commercial segment right now — specifically, floorplan/wholesale financing," Mizzi told Automotive News. "With that being said, we are partnering with retail finance providers to expand our platform coverage."

The company describes its platform as a tool designed to streamline the process auto, powersports and agricultural equipment dealers go through to raise capital to acquire inventory from manufacturers. It relies on open banking technology to offer services to community and regional banks including underwriting, loan servicing, digital auditing, real-time inventory, risk management and financial analytics. In turn, the system lets banks start marketing wholesale financing that is profitable; it also lowers the cost of funds while beefing up operational efficiencies.

In addition, the platform includes dealer and supplier-facing tools designed to eliminate manual interactions.

Launched in 2020, Vero employs 25 people. Prior to the company's Series A financing, Vero raised a $1 million pre-seed round in January 2021 and a $4 million seed round in late 2021, Mizzi said.