Lendbuzz, a vigorous FinTech player, announced a fundraising milestone today, securing $345m in an investment round.
The firm raised the funding through a meticulously structured investment that involved a $45m equity funding and a $300m forward flow facility. The investment round witnessed leadership from Group 1001 and also saw meaningful participation from existing investors such as 83North, O.G. Venture Partners, and MUFG Innovation Partners.
Lendbuzz operates at the intersection of finance and technology, utilising a mélange of alternative data, machine learning, and deep neural networks to devise auto loans that cater to a broad spectrum of borrowers. This allows the firm to navigate the complexities and variables in providing auto loans, especially in situations that involve varied borrower profiles.
The freshly secured funds are earmarked for a comprehensive investment strategy, focusing on product innovation, technology, and research and development. The objective is clear: to fortify Lendbuzz’s standing in the market by enhancing its service delivery to both consumers and dealership partners, ensuring it retains a competitive edge in the sector.
In a compelling demonstration of its sound business model, Lendbuzz has notably distinguished itself by concurrently achieving potent earnings and high growth, illustrating the resilient and effective nature of its operational strategy. Over ten consecutive profitable quarters, the company posted a remarkable 135% increase in revenue in 2022 and managed to surpass 80% in the first half of 2023, eclipsing the $200m mark in terms of annual revenue run-rate.
Lendbuzz CEO Amitay Kalmar noted, “While many companies and industries are just starting to realise the impact of AI, we have been at the forefront of utilising deep neural networks and machine learning technology in consumer credit underwriting.” He further emphasized the company’s unwavering commitment to employing alternative data and machine learning to “provide better access to credit for underserved populations, and better software solutions for our growing network of dealership partners nationwide.” Moreover, Peter Guetig, managing director at Group 1001, expressed, “Lendbuzz is a unique example of a company demonstrating accelerated growth, along with impressive unit economics. We’re excited to further strengthen our relationship.”
Earlier this year, a strategic partnership was cemented between Lendbuzz and Group 1001, executed through a $300m forward flow facility, underscoring the continued and heightened faith in the former’s platform and its sustainable growth and credit performance over time.
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