Lendbuzz raises $360 million to expand its auto lending platform
US-Israeli auto finance startup Lendbuzz announcement on Wednesday it raised a $360 million investment round, including $60 million in a Series C round and $300 million in debt financing led by Goldman Sachs Bank USA.
Wellington Management led the equity financing round, joined by Goldman Sachs & Co and MUFG Innovation Partners, as well as existing investors including 83North, Eyal Ofer’s OG Tech, Arkin Communications, Mivtach Shamir and Highsage Ventures. Goldman Sachs Bank USA led the debt financing with Viola Credit.
The capital injection will support the company’s rapid expansion and allow Lendbuzz to continue its mission to help people currently underserved by the traditional credit system, Lendbuzz said.
The company, which partners with car dealerships, offers a car loan platform for people who don’t have a credit history. Lendbuzz is modernizing the outdated auto finance industry, focusing on serving consumers with little or no credit history in the United States. The company has doubled its number of employees to over 100 in the past year.
“Lendbuzz was founded to extend access to credit to millions of consumers currently underserved by the traditional credit system,” said Amitay Kalmar, co-founder and CEO of Lendbuzz. “This additional funding allows us to further accelerate our growth and continue to improve the car buying experience for our customers.”
Lendbuzz is powered by machine learning and proprietary algorithms that allow it to better assess the risk of creditworthy consumers underserved by traditional banks. The company analyzes thousands of data points to better and more fairly evaluate applications. This enables car dealerships to close business deals that might otherwise have been lost and provides a frictionless and paperless customer experience.