The finance company that bought Cycle World from Bonnier has made more headlines as Octane Lending Inc. (Octane) announced it raised $52 million in Series D funding. This brings the company’s valuation to more than $900 million, with over $192 million in total equity funding raised to date. Progressive Investment Company, part of the Progressive Insurance group, led the round.
“We’re thrilled to embark on the next phase of growth backed by Progressive Insurance and our existing partners, who wholeheartedly believe in our mission of connecting people with their passion,” said CEO Jason Guss. “We are winning in the market because we offer a faster lending experience that also covers more consumers than competitors, and we engage shoppers earlier in the process to streamline transactions.”
The new capital will be used to expand Octane's family of 3,800 dealership partners and 40 OEM and brand partners — including BRP, Suzuki and Triumph Motorcycles—and expand to adjacent markets. When embedded on partnered dealership and OEM websites, Octane’s pre-qualification product has a customer Net Promoter Score of 90 and has increased conversion rates by as much as 7X. Meanwhile, Octane’s point-of-sale offerings enable finance managers at Dealerships to close installment loans in as little as five minutes. Octane expects to originate over $1 billion in the next 12 months and has doubled revenue annually for the past three years.
Octane says it makes purchases seamless by adding value at each stage in the buying journey. Octane does this by inspiring and informing enthusiasts through media brands such as Cycle World, acquired in 2020 along with five other titles, pre-qualifying consumers instantly on Dealer and OEM websites and helping consumers find a Dealership for a simple closing experience. Partnerships with select OEMs enable Octane to offer loans with promotional rates through its in-house lender, Roadrunner Financial.
Maybe this funding might mean a return to print of Cycle World? Okay, it can’t hurt to ask. For more on Octane’s dealer program, click here:
https://octane.co/o/dealers/