US-Israeli auto finance startup Lendbuzz announced on Wednesday it has raised a $360 million investment round, which includes $60 million in a Series C round and $300 million in debt financing led by Goldman Sachs Bank USA.
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 Communications, Mivtach Shamir and Highsage Ventures. Goldman Sachs Bank USA led the debt financing joined by Viola Credit.
The infusion of 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, Lendbuzz says.
The company, which partners with auto dealerships, offers a car loan platform for people who lack credit history. Lendbuzz is modernizing the outdated auto finance industry, focusing on serving consumers with thin or no credit history in the United States. The company has doubled its number of employees to more than 100 in the past year.
“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 is powered by machine learning and proprietary algorithms that allow it to better assess the risk of creditworthy consumers underserved by traditional banks. The company analyzes thousands of data points to better and more fairly evaluate applications. This allows auto dealerships to close business deals that might have otherwise been lost and offers a frictionless and paperless customer experience.