Sherlok rolls out AI platform as it raises A$3.4m VC funding

Sherlok rolls out AI platform as it raises A$3.4m VC funding

Sherlok, an Australian AI fintech platform that keeps homeowners on the best possible mortgage interest rates, has raised A$3.4 million in VC funding.

The startup’s funding round was led by Rampersand, alongside Investible, Paloma and Common Sense Ventures.

This investment will see Sherlok continue to roll out across mortgage brokers and aggregators, with a partnership with leading Australian aggregator AFG integrating the Sherlok platform for its 3,700 brokers nationwide.

Sherlok’s AI engine assesses data (including open banking data) to identify whether a homeowner could access a better rate, and enables brokers to automatically reduce customer’s’ interest rates (with the current lender), therefore significantly reducing the risk of churn for mortgage providers and brokers.

Alongside soaring interest rates, Sherlok has seen 700% user growth in the past year, driven by massive uptake from brokers, who service 70% of Australian borrowers.

Sherlok’s next market innovation is its single-click refinancing tool, which will reduce wait times for borrowers from 30 days to instant approval. The new refinancing solution draws on powerful open banking data to facilitate automated data driven credit decisioning, and will be available to brokers and lenders across Australia later this year.

“We’re presented with a very unique inflection point in the home loan industry, where data accessibility via open banking meets technological capability and extreme consumer demand for instant refinancing. Sherlok’s capital raise allows us to double down and capitalise on this moment to deliver on our commitment to securing the best possible deal for home owners with a single click. These homeowners are more under pressure than ever in the current market and their brokers are looking for better ways to serve them, retain them and refinance them,” said Sherlok Founder and CEO, Adam Grocke.

“We’re about to enter a new era of home lending in Australia, led by brokers and supported by Sherlok.”