Lendbuzz has raised significant capital across multiple funding rounds, most recently securing $45 million in October 2023, led by Group1001, at a valuation of $1.1 billion. Founded in 2015, Lendbuzz specializes in providing auto loans to consumers with limited U.S. credit history, leveraging AI and machine learning to deliver innovative financing solutions.
What Is Lendbuzz and What Does It Do?
Lendbuzz, founded by Amitay Kalmar and Dan Raviv in November 2015, is headquartered in Boston, Massachusetts. The company focuses on helping underserved consumers obtain auto loans, particularly those with limited credit history in the U.S.
Lendbuzz employs 251–500 people and partners with auto dealerships to offer attractive financing options, expand customer bases, and increase sales for dealerships. Its AI-driven platform evaluates borrowers’ full financial profiles, not just credit scores, offering a more inclusive and efficient lending process.
The platform supports a range of auto financing products and is recognized for its speed, reliability, and innovative approach in the alternative lending and auto retail sectors.
How Much Funding Has Lendbuzz Raised?
1. Venture Round
- Amount Raised: $48.1M
- Date: August 2022
- Lead Investors: Not publicly disclosed
- Motivation: To expand market reach and enhance AI-driven platform
2. Debt Financing
- Amount Raised: $150M
- Date: November 2022
- Lead Investors: JP Morgan
- Motivation: To support loan operations and strategic growth
3. Debt Financing
- Amount Raised: $125M
- Date: May 2023
- Lead Investors: Royal Bank of Canada
- Motivation: To expand loan offerings and strengthen financial stability
4. Debt Financing
- Amount Raised: $20M
- Date: June 2023
- Lead Investors: BHI
- Motivation: To increase capital for loan distribution
5. Venture Round
- Amount Raised: $24M
- Date: July 2023
- Lead Investors: Not publicly disclosed
- Motivation: To further develop technology and expand customer base
6. Series C
- Amount Raised: $45M
- Date: October 2023
- Lead Investors: Group1001
- Motivation: To scale operations and enhance product offerings
7. Debt Financing
- Amount Raised: $100M
- Date: May 2024
- Lead Investors: Mizuho Americas
- Motivation: To diversify capital sources and support loan operations
8. Debt Financing
- Amount Raised: $216M
- Date: May 2024
- Lead Investors: Not publicly disclosed
- Motivation: To expand loan offerings and enhance financial stability
9. Debt Financing
- Amount Raised: $400M
- Date: August 2024
- Lead Investors: Viola Credit
- Motivation: To support strategic growth and loan operations
10. Debt Financing
- Amount Raised: $262M
- Date: October 2024
- Lead Investors: Not publicly disclosed
- Motivation: To further expand loan offerings and enhance financial stability
Total Funding Raised: $1.9 Billion
Current Valuation: $1.1 Billion (as of October 2023)
Latest Funding Round: October 2023
Key Investors
1. Viola Credit
- Details: Israel-based credit investment firm providing flexible credit solutions
- Investment Focus Areas: Technology, Fintech, Healthcare
- Notable Investments: Outbrain, ironSource, Payoneer
2. Mizuho Americas
- Details: Division of Mizuho Financial Group, Japan, providing banking and asset management
- Investment Focus Areas: Financial Services, Real Estate, Infrastructure
- Notable Investments: WeWork, Uber, SoftBank Vision Fund
3. Royal Bank of Canada
- Details: Leading Canadian bank offering banking, wealth management, insurance
- Investment Focus Areas: Financial Services, Technology, Healthcare
- Notable Investments: Shopify, Wealthsimple, Borealis Infrastructure
4. JP Morgan
- Details: Global financial services leader in banking, asset management, and private equity
- Investment Focus Areas: Financial Services, Technology, Healthcare
- Notable Investments: Airbnb, Robinhood, Lyft
5. Group1001
- Details: U.S.-based insurance holding company providing innovative insurance solutions
- Investment Focus Areas: Insurance, Fintech, Sports
- Notable Investments: Gainbridge, Clearcover, IndyCar
Where Is Lendbuzz’s Headquarters?
Lendbuzz is headquartered in Boston, Massachusetts, United States, a hub that supports fintech innovation and fosters strong collaboration with auto dealerships.
What’s Next for Lendbuzz?
Lendbuzz is poised to scale operations and expand its reach across the U.S. auto financing market. Leveraging AI-powered underwriting and its network of dealer partnerships, the company aims to serve more underserved consumers while maintaining strong financial stability through strategic debt and equity financing. Future growth is likely to focus on expanding product offerings, entering new markets, and further enhancing its AI-driven credit assessment models.
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