Lendbuzz, a leading financial technology company specializing in auto loans, has announced that it successfully raised $345 million in funding. The investment round included $45 million in equity funding and $300 million in a forward flow facility.
Group 1001, a prominent investment group, led the investment round, with participation from existing investors such as 83North, O.G. Venture Partners, and MUFG Innovation Partners. This equity investment further strengthens the strategic partnership between Lendbuzz and Group 1001, which had already executed a $300 million forward flow facility earlier this year.
The significant commitment from both debt and equity partners highlights the confidence they have in Lendbuzz’s platform, as well as the company’s continuous growth and strong credit performance.
The funds raised will be utilized to deepen investments in product innovation, research and development, and technology enhancements aimed at better serving consumers and dealership partners. Lendbuzz intends to utilize alternative data and machine learning to provide better access to credit for underserved populations while offering improved software solutions for its expanding network of dealership partners across the country.
Amitay Kalmar, Co-Founder and CEO of Lendbuzz, stated, “While many companies and industries are just starting to realize the impact of AI, we have been at the forefront of utilizing deep neural networks and machine learning technology in consumer credit underwriting. Our focus remains on using 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.”
Lendbuzz’s business model continues to stand out due to its consistent earnings and high growth. The company has achieved ten consecutive profitable quarters, with a 135% revenue increase in 2022 and over 80% growth in the first half of 2023, surpassing $200 million in annual revenue run-rate.
Lendbuzz is an AI-powered auto finance platform that empowers consumers to obtain better access to credit for car purchases. Leveraging alternative data and machine-learning algorithms, Lendbuzz can assess the creditworthiness of consumers across the credit spectrum, particularly those underserved by traditional banks.
Furthermore, Lendbuzz supports the success of its dealership partners through proprietary software products that streamline the loan application and origination processes, enabling dealerships to better serve a diverse client base. Headquartered in Boston, Massachusetts, Lendbuzz was founded in 2015 and continues to establish itself as a leader in the auto lending industry.
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