NEW YORK – Octane (Octane Lending Inc.), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has achieved key milestones during the first half of 2023 on its journey to make buying better.
Octane surpassed $3B in aggregate originations through its in-house lender, Roadrunner Financial. The company also saw considerable growth in its newer verticals. Octane grew originations in recreational vehicles (RVs) by 85% since the second half of 2022 and increased tractor and trailer originations by 112% year-over-year.
Adding to its extensive network of Original Equipment Manufacturers (OEMs), Octane launched prime and subvented non-prime financing partnerships with Iron Bull Carts, a provider of powerful, stylish, and comfortable golf carts; Scag Power Equipment, a division of Metalcraft of Mayville Inc., one of the largest independent manufacturers of commercial and residential mowing equipment and debris/turf management equipment in the world; and Taiwan Golden Bee, one of the world’s leading manufacturers of ATVs, scooters, engines, and related key components.
By delivering a fast, easy experience, Octane strengthened its relationships with dealers. The company funded loans for over 800 dealers who had not funded with Roadrunner Financial during the same period in the prior year. Furthermore, the company’s award-winning, digital soft pull tool, Octane Prequal, helped dealers increase their customer base by driving high-quality, high-intent buyers in-store with an experience that saves time for both dealers and consumers. During the first half of 2023, the number of dealers who added Octane Prequal to their websites increased by 140% year-over-year.
Octane expanded its innovative and differentiated offering by rolling out new products and services. Building on the success of Octane Prequal, the company launched its newest digital soft pull tool, Prequal Flex, which enables dealers to reach consumers through all of their marketing channels, including email, social media, text, advertising, and events. Prequal Flex rolled out to powersports dealers nationwide in May and, by the end of June, over 150 dealers had used the tool to submit at least one application. Octane also introduced advertising on its renowned Octane Media properties, which include Cycle World, Motorcyclist, and UTV Driver, enabling leading OEMs and other industry players to connect with millions of high-intent powersports buyers. In March, Octane rolled out a unique business-to-business (B2B) loyalty program, Octane Preferred, to all of its powersports dealer partners nationwide. During Q2 2023, more than 700 dealers benefited from the first two tiers of Octane Preferred each month.
“Despite challenging market conditions, Octane has remained successful by leveraging our digital tools and unique services, as well as our strong relationships with dealer and OEM partners,” said Jason Guss, CEO and co-founder of Octane. “Our focus on innovation and the customer experience will continue to position us well as we deliver on our mission to connect people with their passions and make buying better.”
Continuing its success in capital markets, Octane closed two asset-backed securitizations, OCTL 2023-1 and OCTL 2023-2, both of which were upsized to $400M. The senior class of notes in both transactions were rated AAA by Standard & Poor’s (S&P)* and Kroll Bond Rating Agency (KBRA)**, a testament to the strength of Octane’s prudent credit underwriting as well as its thoughtful servicing strategies and dedicated collections activities. During H1 2023, S&P raised its ratings on eight classes of notes and affirmed its ratings on three classes of notes across three issuances.* At the same time, KBRA upgraded 14 classes of notes and affirmed seven classes across multiple issuances.** Octane has completed $2.7 billion of asset-backed securitizations through eight transactions since launching the program in December 2019. Additionally, Octane closed a new $125M warehouse facility in April, bringing its total revolving capacity to $925M, while also renewing and extending the existing maturities of its other four facilities for up to an additional two years.
Octane also continued to receive awards for its products, leadership, and culture, including “Best Consumer Lending Product” in the 7th annual FinTech Breakthrough Awards and a BIG Innovation Award from the Business Intelligence Group. Additionally, Jason Guss, CEO and co-founder of Octane, was named Best Entrepreneur – Computer Software – 500 or More Employees at the American Business Awards, and Murali Vajjiravel, chief technology officer at Octane, placed in the 10th spot on Financial Technology Report’s list of the Top 25 Financial Technology CTOs and CIOs of 2023.
