Fintech Lendbuzz Raises $345M to Expand its AI-Powered Auto Finance Platform

Lendbuzz, a financial technology company, that uses alternative data, machine learning, and deep neural networks to provide auto loans for a wide spectrum of borrowers announces today that they raised $345 million in a combination of $45 million in equity funding and $300 million in a forward flow facility.

Group 1001 led the investment round “with participation from existing investors including, 83North, O.G. Venture Partners, and MUFG Innovation Partners.”

The equity investment expands “the strategic partnership between Lendbuzz and Group 1001, with both parties executing a $300 million forward flow facility earlier this year.”

This sizable commitment from existing debt and equity partners demonstrates “the confidence Lendbuzz’s partners have in the platform, and the company’s growth and credit performance over time.”

The funds raised will be used “to deepen investments in product innovation, research and development, and technology aimed at continuing to best serve consumers and dealership partners.”

Amitay Kalmar, Co-Founder and CEO of Lendbuzz, said:

“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 differentiate itself by generating both strong earnings and high growth.” Across ten consecutive profitable quarters, Lendbuzz’s revenue increased 135% in 2022, and “over 80% in the first half of 2023, exceeding $200 million of annual revenue run-rate.”

Lendbuzz is an AI-powered auto finance platform that “helps consumers obtain better access to credit when purchasing a car.”

Powered by alternative data and machine-learning algorithms, Lendbuzz can “assess the creditworthiness of consumers across the credit spectrum, many of whom are underserved by traditional banks.”

Lendbuzz supports the success of its dealership partners “through proprietary software products that streamline the loan application and loan origination processes, helping dealerships better serve a more diverse client base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.”

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