Molo has raised a further £266 million in debt and equity funding through a Series A round.

The investment was led by global financial services firm Macquarie Group and Patron Capital, with equity funding from Yabeo and existing shareholders Andenes Investments and GPS Ventures.

The capital raise comes after a first tranche of £10 million for the Series A round that closed in January.

The UK-based digital mortgage lender stated that the investment will be used to accelerate growth through additional online lending via its proprietary technology and new product propositions.

Molo combines automated decisioning and human expertise with an ability to integrate with its partners’ systems to deliver faster and more transparent mortgage loans.

The company reported significantly higher volumes of online mortgage applications post COVID-19. In August and September alone, Molo’s pipeline of buy-to-let mortgage applications exceeded £500 million.

Co-founder and chief executive Francesca Carlesi said: “Molo has reimagined the whole mortgage experience from scratch; we are applying the convenience and speed of today’s technology for today’s customers.

“This additional backing is a sign of trust in Molo, and we are proud to have reputable players like Macquarie, Patron and Yabeo on our team as we seek to revolutionise the mortgage market.”

Gerrit Seidel, managing director of Yabeo, said: “The mortgage markets globally and particularly in the UK, are the largest financial services segments.

“Dominated still by traditional banking incumbents and brokerage setups, the market is ready for accelerated disruption, unlocking significant cost efficiencies and enabling consumer friendly online mortgage solutions – and Molo is best equipped to spearhead these developments in the UK.”

Molo launched at the end of 2018 as the first fully digital, direct to consumer, mortgage lender in England and Wales, leveraging a proprietary tech platform to deliver paperless buy-to-let mortgages.

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