Informed.IQ Raises $63 Million for AI-Driven Loan Verification Expansion

Informed.IQ Secures $63 Million from Invictus Growth Partners

Informed.IQ, a frontrunner in AI-powered loan verification and fraud prevention, has recently announced a significant growth equity investment of $63 million from Invictus Growth Partners. This strategic funding is set to bolster Informed.IQ's capabilities and expand its reach within the lending industry, addressing both fraud prevention and loan verification needs.

The company has earned its reputation by providing exceptional services to seven of the top ten auto lenders in the U.S., processing over $350 billion in loan originations. Informed.IQ’s platform not only streamlines the loan closing process but also significantly reduces fraud risk. With this investment, the company aims to accelerate its efforts to penetrate other segments such as mortgage lending, consumer lending, tenant screening, and government benefit administration.

The need for advanced verification solutions has become increasingly critical. According to statistics from Equifax, consumer non-mortgage write-offs saw a staggering 145% increase in 2024 compared to three years prior, with auto lending fraud losses estimated to exceed $7.9 billion. Informed.IQ’s innovative approach utilizes proprietary data and machine learning algorithms to detect fraudulent activities, offering a robust defense against such losses.

Ian Anderson, President of Westlake Financial Services, emphasized the importance of Informed.IQ’s solutions, stating, "Informed.IQ's AI helps us identify consumer applications that are fabricated through AI technology, preventing significant losses annually."

The company’s unique dataset comprises over two billion data points derived from more than 100 million loan documents. This extensive data advantage positions Informed.IQ as a leader in the lending technology space, allowing it to identify fraud patterns and automate verification processes more effectively than any competitor. Justin Wickett, the company's CEO and Co-Founder, commented on the technology's impact, saying, "Lenders are now able to secure more loans without increasing their workforce, thanks to our comprehensive lending intelligence platform."

Informed.IQ’s mission revolves around bridging intelligence across financial institutions while alleviating back-office burdens and reducing fraud losses for loan originators. The company’s founder has made it clear that their dedication extends beyond auto lending; they aim to apply their AI-driven insights to various industries, furthering their goal of enhancing financial inclusivity and compliance through technological advancements.

John DeLoche, Co-Founder and Managing Partner at Invictus, noted the trust that major lenders place in Informed.IQ, underscoring the distinctive dataset as a game-changer. The partnership with Invictus will further enable innovations that can tap into new markets, expanding the advantages of Informed.IQ's offerings.

Informed.IQ’s end-to-end lending suite integrates AI technologies to provide reliable solutions throughout the lending lifecycle—from pre-underwriting to servicing. Their models are designed to facilitate verification across multiple sources and industries, enhancing identification and prevention of fraud at various lending stages. The total addressable market for AI-powered verification services is projected to reach $6 billion.

William Nettles, Co-Founder and Managing Partner at Invictus, expressed confidence in Informed.IQ’s capabilities, citing the company’s use of historical data in training their models. He believes this precision is crucial for entering high-stakes sectors like mortgage and government, where verification errors can be significantly costly.

Informed.IQ joins a prestigious group of investors, including Nyca Partners and US Venture Partners, signaling strong confidence in its vision. This funding marks just the beginning of an exciting new chapter for the company.

For more information, visit informedIQ.com or follow them on LinkedIn.