AI-powered auto finance platform Lendbuzz has bagged $360m in funding, which was comprised of debt and equity.
The round included $60m in Series C funding, which was led by Wellington Management and joined by Goldman Sachs & Co and MUFG Innovation Partners. Other participants included existing backers including 83North, Eyal Ofer’s O.G. Tech, Arkin Holdings, Mivtach Shamir and Highsage Ventures.
The remaining $300m was supplied through debt financing from Goldman Sachs Bank USA and Viola Credit.
With the capital injection, Lednbuzz hopes to continue its expansion and help more consumers missed by traditional providers.
Lendbuzz partners with auto dealerships to supply consumers with an end-to-end loan origination and services platform that fits into dealers’ existing workflows. The company’s goal is to provide those with thin or now credit history in the US with access to auto finance. It claims that more than 45 million people in the US are missed by the traditional credit system.
Its underwriting platform is powered by machine learning to better access the creditworthiness of consumers, using various datapoints, including transaction and spending patterns to education and employment history.
The company has experienced strong growth over the past year, with a 200% increase in loan origination year-over-year in the first half of 2021. It has also doubled its team size in the past year.
Lendbuzz co-founder and CEO Amitay Kalmar said, “Lendbuzz was founded to expand access to credit for millions of consumers who are currently underserved by the traditional credit system. This additional financing allows us to further accelerate our growth and continue improving the car purchase experience for our clients.”
Copyright © 2021 FinTech Global