Lendbuzz’s Car Financing Platform Nabs $150 Million

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Fintech company Lendbuzz announced it has secured $150 million in debt and equity financing.

The company, based in Boston, MA. got its funding from a consortium of investors including leader 83North, and existing investors BHI, ConnectOne Bank, Viola Credit and IDB Bank and an unnamed insurance company. Just 12 months ago, the startup completed a $30 million debt funding round.

Lendbuzz’s machine learning and proprietary algorithms based financing model allows the company to better assess the creditworthiness of consumers that lack a significant credit history, or are underserved by traditional lending institutions despite their potentially high credit worthiness. Lendbuzz is partnered with auto dealerships to offer attractive financing solutions to their customers. Last year, Lendbuzz’s loan origination grew 320%, and the company increased its dealership network across the country to include key markets, such as California and Florida.

“This is a significant step forward for Lendbuzz, Amitay Kalmar, co-founder and CEO of Lendbuzz in a statement.  “The capital will allow us to further accelerate our fast-growing car financing platform and enhance our ability to provide the best terms to borrowers that do not have an established U.S. credit history.”

“After backing some of the world’s leading fintech companies, we are very excited to join Lendbuzz and support their ambitious growth plans,” said Arnon Dinur, Partner at 83North, in the same statement. “Lendbuzz is addressing a large and underserved market, has innovative technological underwriting capabilities and unique customer acquisition strategy that supports their high growth.”

Lendbuzz was founded in 2015.