Lendbuzz, a car financing platform designed to help US consumers with limited credit history, has collected $150m in debt and equity financing.
The equity line was led by global venture capital firm 83North and received ‘significant’ support from previous backers of Lendbuzz. BHI, ConnectOne Bank, IDB Bank, Viola Credit, and an unnamed insurance firm supplied the debt financing.
It was not made clear how much of the round was made up of debt and how much was equity.
With the new batch of capital, Lendbuzz is hoping to accelerate the growth of its platform and bolster its ability to serve US consumers, the company’s co-founder Amitay Kalmar said.
Founded in 2015, Lendbuzz uses machine learning and statistical algorithms to assess the creditworthiness of a US consumer with limited credit history and are being underserved by traditional lenders, it claims. The company partners with auto dealers to offer customers appealing financing offerings, helping the consumer access loans and the sellers to find more deals.
Consumers can access loans from $7,000 up to $40,000 on three, four, or five-year terms. APR rates begin at 4.9 per cent and a consumer can qualify for a loan within five minutes.
The company witnessed strong growth last year, raising its loan origination by 320 per cent.
83North Partner Arnon Dinur said, “After backing some of the world’s leading fintech companies, we are very excited to join Lendbuzz and support their ambitious growth plans.
“Lendbuzz is addressing a large and underserved market, has innovative technological underwriting capabilities and unique customer acquisition strategy that supports their high growth.”
This round has come just one year after the lending company received a $30m debt facility.
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