October 9, 2023 — Since Lendbuzz CEO and Co-Founder Amitay Kalmar joined us on stage at the AUTOVATE conference in December last year, his company revenues jumped more than 80% in 2023, and has just announced a $45 million raise in equity funding along with $300 million a forward flow facility.
The $45 million infusion increased the Israeli-fintech lender’s valuation to approximately $1.1 billion. In total, since its launch in 2015, Lendbuzz has raised $200 million in equity capital and more than $2 billion in credit.
Lendbuzz has generated 10 consecutive quarters of profitability while increasing revenue135% in 2022, and over 80% in the first half of 2023, exceeding $200 million of annual revenue run-rate.
The AI-based fintech firm uses alternative data, machine learning, and deep neural networks to provide auto loans for a wide spectrum of borrowers. It has focused on providing access to credit for people who traditionally have been unable to secure loans. The firm also is building out a national network of dealership partners to help them identify potential customers ignored by typical lenders.
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.
Lendbuzz will use the capital for product innovation and research and development.
“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,” says Kalmar.
“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.”