Lendbuzz Raises $360 Million to Expand Proprietary Auto Finance Platform

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Company grew loan origination over 200 percent year over year, providing auto financing for consumers with thin credit history using machine learning algorithms

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Lendbuzz, an AI-based auto finance platform, today announced a $360 million investment, including $60 million in Series C equity financing led by Wellington Management joined by Goldman Sachs & Co and MUFG Innovation Partners, and $300 million in debt financing led by Goldman Sachs Bank USA. The new growth capital will support the company’s fast expansion, and allow Lendbuzz to further its mission of helping individuals currently underserved by the traditional credit system. The company, which partners with auto dealerships, offers an end-to-end loan origination and servicing platform that fits into dealers’ existing F&I workflows and enables a seamless, digital experience for buyers.

Lendbuzz is modernizing the outdated auto finance industry, with a focus on serving consumers that have thin or no credit history in the United States. There are over 45 million people in the U.S. that live outside the traditional credit system -- and another 30% of U.S. consumers are considered near-prime clients -- precluding a large segment of the population from the credit terms they deserve, often forcing them to accept very high interest rate loans.

"Lendbuzz was founded to expand access to credit for millions of consumers who are currently underserved by the traditional credit system,” said Amitay Kalmar, co-founder and CEO of Lendbuzz. “This additional financing allows us to further accelerate our growth and continue improving the car purchase experience for our clients.”

Lendbuzz's underwriting model -- powered by machine learning and proprietary algorithms -- allows it to better assess the risk of creditworthy consumers who are underserved by traditional banks. Compared to legacy underwriting systems that are based on FICO scoring and often utilize just a handful of data points, Lendbuzz analyzes thousands of data points -- from transaction and spending patterns to education and employment history -- to better and more fairly evaluate applicants. Auto dealerships, in turn, are able to close additional business opportunities that otherwise would have been lost, and offer a frictionless and 100% paperless customer experience that enables real-time approval and faster funding.

The company grew its loan origination run rate more than 200 percent year-over-year in the first half of 2021 and continues its rapid geographic expansion within the U.S. to serve more auto dealerships and consumers. The company doubled its headcount in the past year to more than 100 employees and is continuing to recruit. To find out about open positions at Lendbuzz, visit: https://lendbuzz.com/careers.

Wellington Management led the equity funding round joined by Goldman Sachs & Co and MUFG Innovation Partners, as well as existing investors including 83North, Eyal Ofer’s O.G. Tech, Arkin Holdings, Mivtach Shamir and Highsage Ventures. Goldman Sachs Bank USA led the debt financing joined by Viola Credit.

About Lendbuzz
Lendbuzz is an AI-based auto finance platform that helps consumers with thin or no credit history obtain financing when purchasing a car. Powered by machine learning and proprietary algorithms, Lendbuzz is able to better assess the creditworthiness of consumers with limited credit history, who are underserved by the traditional banks. By partnering with auto dealerships, Lendbuzz is able to offer consumers attractive financing solutions and dealerships are able to close additional business opportunities and serve a more diversified client base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.

For more information on how Lendbuzz is transforming the auto finance experience visit http://www.lendbuzz.com.

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