Lendbuzz raises $150 million in equity and debt for auto financing platform
Lendbuzz, a Boston-based fintech that officers auto financing to consumers with limited credit history, said it raised $150 million in equity and debt.
The equity round was led by 83North, with contributions from other existing investors. The debt round was led by BHI, ConnectOne Bank, IDB Bank, Viola Credit and a large insurance firm that was not named.
The company uses machine learning to screen customers with limited history for financing. The company works closely with auto dealerships to find loans for applicants.
"This is a significant step for Lendbuzz," Amitay Kalmar, founder and CEO of the company, said in a release. "The capital will allow us to further accelerate our fast-growing car financing program and enhance our ability to provide the best terms to borrowers that do not have a an established U.S. credit history."
The company says that its loan origination platform grew by 320% in 2018 and that it expanded its dealership markets to California and Florida.