Lendbuzz gains $345M in growth funding
Lendbuzz announced on Wednesday that the financial technology company that uses alternative data, machine learning and deep neural networks to provide auto financing has raised $345 million.
Company leaders said that figure is a combination of $45 million in equity funding and $300 million in a forward flow facility, which they plan to use to expand their platform.
According to a news release, 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.
Lendbuzz reiterated 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,” Lendbuzz co-founder and CEO Amitay Kalmar said in the news release.
“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,” continued Kalmar, who is among the executives scheduled to be on stage during Used Car Week, which begins on Nov. 6 in Scottsdale, Ariz.
Investors likely have been impressed with Lendbuzz’s performance, as the company said it has posted 10 consecutive profitable quarters with revenue increasing 135% in 2022 and more than 80% during the first half of 2023.
Lendbuzz also said it is exceeding $200 million of annual revenue run-rate.
“Lendbuzz is a unique example of a company demonstrating accelerated growth, along with impressive unit economics,” Group 1001 managing director Peter Guetig said. “We’re excited to further strengthen our relationship.”