US-based online mortgage lender Better.com has raked in $200m in a Series D funding round to boost home financing for customers.

The funding round was led by L Catterton, with existing backers Activant Capital, Ally Financial, American Express Ventures, Ping An Global Voyager Fund, and 9Yards Capital also participating.

The latest funding round brings the company’s total valuation to $4bn, Bloomberg reported citing people familiar with the matter.

This infusion brings the total amount raised by the New York-based homeownership platform to date to $410m.

The investment comes as Better.com reported a four-fold increase in its funded loan volume. In total, the company has funded $25bn in home loans to date.

Set up in 2016, Better moved the mortgage process online with a technology-based commission-free digital model.

In addition, Better is streamlining the home financing lifecycle by providing title and homeowners insurance on its platform.

Better has employed over 2,500 people since the onset of the Covid-19 pandemic.

Better.com CEO and founder Vishal Garg said: “Better was founded to help eliminate unnecessary barriers to home financing.

“We are committed to working tirelessly for our customers, growing our team and building out our technology to provide them the best possible experience when pursuing homeownership.”

“We are excited about new and existing investors continuing to support our mission to make homeownership simpler, faster and more accessible for all Americans.

L Catterton partner Michael Farello said: “Better.com has overhauled the process of getting a mortgage, making the process faster, easier and cheaper for Americans. We are proud to support them.”