T
omo Mortgage, a fintech startup co-founded by former Zillow executives, has secured $20 million in funding from Progressive Insurance and other investors. This Series B financing round brings the total investment in Tomo to $130 million, as the mortgage industry experiences a surge in refinancing due to rising interest rates.

    Progressive's CEO and Co-founder Greg Schwartz said their investment aligns with their focus on providing competitive rates and digital-first experiences for homebuyers. He also joked about the potential synergy between Progressive's Flo character and Tomo, dubbing it "FloMo."

    The timing of this investment is notable, as Rocket Mortgage has acquired Redfin and Stone Point Capital has taken a major stake in Keller Williams. Tomo's CEO, an ex-Zillow executive, described the move as a "power play" that creates a new competitor for Zillow and CoStar.

    Tomo plans to use the additional funds to expand its team in key cities like Detroit, Seattle, and New York City, where it will also relocate its headquarters. The company aims to build on its AI-powered mortgage sales and underwriting process, which has already been implemented in 31 states.