Cleveland’s Splash Financial raises over $70 Million in Series C

Splash Financial, a lending marketplace that connects consumers with credit unions and banks using automated loan-processing tools, has raised more than $70 million in a Series C funding round and launched a home equity line of credit (HELOC) product.

According to the company’s Wednesday announcement, the round was led by investment firm Grand Oaks Capital and included participation from First Tech Federal Credit Union, Curql Collective, The O.H.I.O. Fund and some of Splash’s existing investors. With this financing, Splash says it has raised more than $135 million in equity since its 2013 founding while processing more than $6 billion in loans through its platform.

Splash’s platform has focused to date on student loan refinancing and personal loans, matching borrowers with community lenders through automated underwriting and application workflows. The addition of a HELOC offering expands that product mix to provide homeowners with access to revolving credit backed by home equity, a common funding source for renovations, consolidating higher‑cost debt or covering large expenses according to the company.

“We’re expanding our credit union and bank network - supporting our partners with the tools they need to reach more borrowers and deliver a streamlined, competitive lending experience,” said CEO Steven Muszynski in the company statement.

Grand Oaks Capital described the investment as backing technology that helps smaller financial institutions deliver more modern lending experiences. “Consumers today expect great rates and a frictionless experience, but many traditional lenders struggle to deliver that ‘wow’ factor,” said Dave Bovenzi, chief investment officer at Grand Oaks, in the announcement.

First Tech, headquartered in San Jose, California and with more than $16 billion in assets, also participated in the round and said the partnership will let it offer members access to Splash-powered debt consolidation and HELOC options while Curql Collective, a credit-union-backed investor focused on fintech for credit unions, also affirmed support for Splash’s AI and automated-lending approach.

Industry context The deal comes as banks, credit unions and fintechs compete to offer faster, digitally enabled lending products while managing credit risk in a higher-rate environment. HELOCs have regained attention in the last couple of years according to the New York Times, as interest rates and home values change: lenders must balance demand from homeowners with underwriting that accounts for variable-rate exposure and housing-market volatility.

Platforms that aggregate community lenders may help smaller institutions scale originations without large technology investments, but success will depend on program economics and credit performance. 

Splash said the new capital will be used to accelerate growth and expand its network of credit unions and banks. 

As community lenders look for digital distribution partners, Splash’s model could drive loan growth while maintaining performance, especially in HELOCs where economic and rate shifts can have an impact.