Total amount raised
$2.1 Billions
Latest funding date
Location
Title
Lendbuzz has successfully raised significant funding through multiple rounds, including a $262 million debt financing and a $216 million asset-backed securitization. The platform leverages AI and machine learning to offer car financing solutions, particularly for consumers with limited U.S. credit history.
Keep reading to explore the intricacies of Lendbuzz's fundraising journey and the investors backing this innovative platform.
What Is Lendbuzz?
Lendbuzz, founded in November 2015 by Amitay Kalmar and Dan Raviv, is headquartered in Boston, Massachusetts. The company specializes in providing auto loans, particularly for consumers with limited U.S. credit history. Leveraging AI and machine learning, Lendbuzz offers innovative financing solutions that help underserved consumers obtain car loans.
With a team of 251-500 employees, Lendbuzz partners with auto dealerships to offer attractive financing options. This collaboration not only benefits consumers but also helps dealerships expand their customer base and close more sales. The platform's comprehensive approach considers the borrower's entire financial picture, not just their credit score.
For more information, visit the official Lendbuzz website or check out their Crunchbase profile.
How Much Funding Has Lendbuzz Raised?
Round Name: Venture Round
- Amount Raised: $48.1M
- Date: August 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their market reach and enhance their AI-driven platform.
Round Name: Debt Financing
- Amount Raised: $150M
- Date: November 2022
- Lead Investors: JP Morgan
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support loan operations and strategic growth.
Round Name: Debt Financing
- Amount Raised: $125M
- Date: May 2023
- Lead Investors: Royal Bank of Canada
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand loan offerings and strengthen financial stability.
Round Name: Debt Financing
- Amount Raised: $20M
- Date: June 2023
- Lead Investors: BHI
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To increase capital for loan distribution.
Round Name: Venture Round
- Amount Raised: $24M
- Date: July 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop their technology and expand their customer base.
Round Name: Series D
- Amount Raised: $45M
- Date: October 2023
- Lead Investors: Group1001
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance product offerings.
Round Name: Debt Financing
- Amount Raised: $100M
- Date: May 2024
- Lead Investors: Mizuho Americas
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To diversify capital sources and support loan operations.
Round Name: Debt Financing
- Amount Raised: $216M
- Date: May 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand loan offerings and enhance financial stability.
Round Name: Debt Financing
- Amount Raised: $400M
- Date: August 2024
- Lead Investors: Viola Credit
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support strategic growth and loan operations.
Round Name: Debt Financing
- Amount Raised: $262M
- Date: October 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand loan offerings and enhance financial stability.
Lendbuzz has raised a total of $1.39 billion. The current valuation is not publicly disclosed.
Key Investors
- Viola Credit
- Details: Viola Credit is a leading credit investment firm based in Israel. They specialize in providing flexible and innovative credit solutions to high-growth companies.
- Investment Focus Areas: Technology, Fintech, Healthcare.
- Notable Investments: Outbrain, ironSource, Payoneer.
- Mizuho Americas
- Details: Mizuho Americas is a division of Mizuho Financial Group, a global financial institution headquartered in Japan. They offer a wide range of financial services including banking, trust banking, securities, and asset management.
- Investment Focus Areas: Financial Services, Real Estate, Infrastructure.
- Notable Investments: WeWork, Uber, SoftBank Vision Fund.
- Royal Bank of Canada
- Details: Royal Bank of Canada (RBC) is one of the largest banks in Canada and a leading provider of financial services globally. They offer personal and commercial banking, wealth management, insurance, and capital markets services.
- Investment Focus Areas: Financial Services, Technology, Healthcare.
- Notable Investments: Shopify, Wealthsimple, Borealis Infrastructure.
- JP Morgan
- Details: JP Morgan is a global leader in financial services offering solutions in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and private equity.
- Investment Focus Areas: Financial Services, Technology, Healthcare.
- Notable Investments: Airbnb, Robinhood, Lyft.
- Group1001
- Details: Group1001 is an insurance holding company based in the United States. They focus on providing innovative insurance solutions and have a strong presence in the annuities and life insurance markets.
- Investment Focus Areas: Insurance, Fintech, Sports.
- Notable Investments: Gainbridge, Clearcover, IndyCar.
What's Next for Lendbuzz?
With a $100 million warehouse facility secured from Mizuho Americas, Lendbuzz is poised to expand its capital sources and deepen relationships with global banks. This opportunity allows the company to serve a more diverse customer base through its auto dealership partners, leveraging AI and machine learning to assess creditworthiness.
Future fundraising efforts may see Lendbuzz attracting additional support from other financial institutions, enhancing their technology and market reach. However, challenges such as ensuring the accuracy of their algorithms and competing with traditional banks remain. Managing risks associated with lending to consumers with limited credit history will be crucial for sustained growth.
Use Clay to Get Funding Data
Sales professionals, take advantage of Clay's platform to access comprehensive fundraising data on companies like Lendbuzz and gather other critical business insights. Sign up for free today and elevate your sales strategy with the power of detailed, actionable information.
