After a challenging two years that included high-profile layoffs conducted via Zoom, digital mortgage company Better.com is preparing to go public through a merger with Aurora Acquisition Corp. The listing on Nasdaq is scheduled for Thursday, a process that was initially expected to occur in 2021.
The delay was due to an inquiry by the Securities and Exchange Commission and a series of layoffs, which reduced Better’s workforce by approximately 90%, as reported by TechCrunch. The upcoming listing is anticipated to generate about $565 million in new capital, including a previously committed $528 million convertible note from SoftBank affiliates.
This capital will support Better.com’s ongoing focus on technology, including the development of its proprietary loan origination platform, Tinman. Additionally, the firm has introduced One-Day Mortgage, enabling customers to complete the online process of pre-approval, rate locking, and obtaining a binding mortgage commitment letter within 24 hours. Better.com is optimistic that this service will attract interest as rates increase.
Vishal Garg remains the CEO of Better.com and has undergone extensive leadership training following previous controversies. In late 2021, he faced backlash for a video of him terminating 900 employees during a Zoom call. Shortly after, he publicly accused many of those laid off of “stealing” by only working an average of two hours while logging eight hours. Reports have also surfaced detailing Garg’s volatile behavior, with staff describing a culture of fear and inappropriate language.
In a separate incident, Garg reacted negatively to criticism from Howard Newman of Pine Brook Partners regarding Better.com’s decision to pursue a SPAC route for its public listing, labeling Newman in derogatory terms.