Vesta raises $30M to bring swarms of agents to mortgage lenders

Vesta, an AI-native software startup that assists lenders in originating mortgages, announced on Thursday that it has raised $30 million in a funding round led by Conversion Capital. The startup employs AI agents to automate much of the loan origination process, enabling lenders to reduce both the time and costs associated with processing mortgages.

Three of Vesta's customers, including Pennymac and New American Funding, participated in this funding round alongside Citi Ventures and Andreessen Horowitz.

Mike Yu, co-founder and CEO of Vesta, stated that the timing for this funding was ideal due to a significant increase in demand for their product, which has "exploded in the last year." He reported that the company's revenue has increased 12x year over year and that Vesta has facilitated the origination of over $100 billion in loans annually for lenders.

Despite this growth, Yu noted that Vesta currently holds less than 5% market share. He emphasized the need to expand the team, capture more of the market, and invest in new product lines. These new offerings include a personal assistant for mortgage issuers that can assist with tasks and track workflows.