Fuse raises $25M to disrupt aging loan origination systems used by U.S. credit unions

In 2023, after three years of building an automotive lending startup, co-founders Andres Klaric and Marc Escapa realized that LLMs could modernize something even more significant: the loan origination system , which is the backbone of the lending industry. Frustrated by the limitations of legacy software, Klaric (pictured left), a Bolivian native, and Escapa (pictured righ), a Spanish immigrant, pivoted their business to build Fuse, an AI-native LOS. On Monday, Fuse announced that it has raised a $25 million Series A led by Footwork, Primary Venture Partners, NextView Ventures, and Commerce Ventures. An LOS serves as the primary system of record for most lenders, managing the entire loan lifecycle: from initial application and underwriting to final approval and credit disbursement. However, traditional systems can take as long as a year to integrate and typically have multi-year, expensive contracts, Klaric said. By leveraging AI, Fuse claims its agents can help lenders process higher loan volumes, automate underwriting, and significantly reduce operational costs. Fuse, which already has over 100 customers, wants to ease the transition to Fuse for credit unions by offering the first 50 qualifying institutions free access to its platform until their current contracts with legacy LOS vendors expire. To support this, the startup has allocated $5 million for a program it’s calling a ‘rescue fund. Klaric insists that “it’s not just a marketing gimmick,” explaining that because legacy software costs are high, many credit unions cannot afford to break their current contracts to switch providers. Techcrunch event Disrupt 2026: The tech ecosystem, all in one room Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $400. Save up to $300 or 30% to ...