Boston fintech Lendbuzz raises $345 million to expand its AI-powered auto finance platform
Lendbuzz, a Boston-headquartered fintech company that uses alternative data, machine learning, and deep neural networks to provide auto loans for a wide spectrum of borrowers, has 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.
“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,” said Amitay Kalmar, Co-Founder and CEO of Lendbuzz. “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 a unique example of a company demonstrating accelerated growth, along with impressive unit economics,” said Peter Guetig, Managing Director at Group 1001. “We’re excited to further strengthen our relationship.”