Online mortgage advisor Burrow pivots to B2B, cites unit economics issue

Feb 12, 2018 · techcrunch.com

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Burrow, the UK startup founded by ex-VC Pradeep Raman and backed by Passion Capital, is shutting down its online mortgage brokerage service, TechCrunch has learned. The move is the result of a change in strategy as the nascent company pivots to a B2B model, offering software tools to lenders, mortgage networks and brokers.

According to sources, a small number of employees working in Burrow’s London office are also being let go. These are staff who operated the mortgage advisory side of the business.

Confirming the planned shuttering of Burrow’s B2C product and the startup’s change in direction, founder Raman provided the following statement:

We are now re-positioning as a B2B business working with lenders, mortgage networks and brokers to provide them with digital user on-boarding, automated product recommendation, CRM, content and other software and tools we have built.

He also stressed that retraction from the consumer-facing brokerage space will happen in a "very controlled manner" over the next several weeks. "We have a significant pipeline of customers whose cases we are fully handling through to completion," he adds.

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