Octane, a startup that gives “prompt” financing for giant leisure and way of life purchases, has raised $100 million in a Collection F spherical with a post-money valuation of $1.3 billion, it tells Crunchbase Information completely.
Repeat backer Valar Ventures led the increase, which included participation from Upper90, Huntington Nationwide Financial institution, Tenting World, Holler-Traditional Household and others. Half of the increase was major financing, and the opposite half went towards a secondary share sale to offer present shareholders, together with present and former staff, liquidity, in accordance with CEO and co-founder Jason Guss.
Previous to this spherical, New York-based Octane had raised $242 million in funding — not together with debt financing — because it was based in 2014, in accordance with Guss. The corporate says it has additionally accomplished $4.7 billion in asset-backed securitizations since 2019.
Octane’s newest spherical comes amid a busy interval for fintech funding total: World enterprise funding to monetary expertise startups in 2025 has, as of Dec. 11, reached $49.4 billion throughout 3,545 offers, per Crunchbase information. That’s a 30% improve in {dollars} raised in comparison with the $38 billion raised throughout 4,630 offers throughout the identical time interval in 2024.
Octane began as a secured point-of-sale lender to provide shoppers extra financing choices for powersports objects reminiscent of bikes, ATVs and snowmobiles. It has since expanded into the RV, marine, mower, tractor, trailer and auto markets. And it has additionally advanced its mannequin to incorporate a white-label captive lending platform, dubbed “Captive-as-a-Service,” that permits retailers and producers to supply financing to their prospects underneath the model of their selection.
“Captive-as-a-Service brings collectively expertise, underwriting, mortgage processing and servicing, and capital markets execution in a single platform underneath the associate’s chosen model,” Guss advised Crunchbase Information. The benefit for the retailer, he mentioned, is to provide them a approach to diversify their income streams, construct long-term enterprise worth, and strengthen their buyer retention.
The corporate has varied partnerships with OEMs, or authentic gear producers, and supplier companions within the markets it serves. It additionally presents a wide range of merchandise, reminiscent of Octane Prequal and Prequal Flex, designed to assist retailers land prospects.
“Loads of VCs imagine SaaS firms ought to simply concentrate on pure tech and lenders ought to simply do lending,” Guss mentioned. “We imagine that one of the best firms have to do each. … By providing varied companies usually not provided by lenders built-in with a lending product, we’re in a position so as to add worth past merely promoting cash cheaper.”
Rising attain
Refreshingly, Octane is open to offering some particulars on its financials. The startup says it was GAAP internet revenue worthwhile in 2021, 2023 and 2024. Guss initiatives the corporate may have about $80 million in adjusted EBITDA for 2025.
Since its inception, Octane has generated over $7.5 billion in loans. In 2024, it originated over $1.6 billion in loans and is on tempo to originate over $2.1 billion this yr, in accordance with Guss.
It has over 4,000 supplier companions, and works with over 60 authentic gear manufacturing model companions. Presently, it has over 600 staff.
The corporate makes cash by way of platform charges, paid by both retailers or OEM companions primarily for promotional financing. It additionally makes cash by promoting loans, by way of servicing revenue and efficiency charges. For loans it holds it earns curiosity revenue.
Guss believes that some fintechs are “afraid” to confess they’re a lender or “keep away from it fully as a result of some VCs imagine lending is dangerous.”
“Lending isn’t dangerous, dangerous lending is dangerous,” he mentioned. “Good lending is among the oldest and most sturdy enterprise fashions on this planet.”
Wanting forward, Guss believes Octane can present worth to any market the place shoppers make a large-ticket buy and the place retailers and producers can profit from proudly owning and integrating their very own monetary merchandise.
For his half, Valar founding associate James Fitzgerald described Octane’s providing, which mixes software program and financing merchandise, as “distinctive.”
“We count on Octane to proceed to take market share — each in its present markets and in these it’s solely begun to enter — for a really very long time,” he mentioned in a launch. “One of many investing classes of the previous twenty years is that one of the best tech firms can compound for much longer than anticipated.”
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Illustration: Dom Guzman
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