Lendbuzz Secures $345m Funding for Car Financing Innovation

Published 6 months ago

Boston-based fintech Lendbuzz has successfully raised $345m in funding in its latest capital raise. The round included $45m in equity funding and a $300m forward flow facility, led by Group 1001 and included participation from 83North, O.G. Venture Partners, and MUFG Innovation Partners.

Using AI and Machine Learning for Car Financing

Established in 2015, Lendbuzz utilizes artificial intelligence and machine learning to revolutionize car financing. By employing alternative data to assess a consumer’s creditworthiness, the company facilitates easier access to credit for those purchasing a vehicle. This includes those underserved by traditional banks and lenders. Lendbuzz also offers dealer partners a proprietary software that expedites the loan process.

Streamlining the Loan Application Process

Claiming to streamline the loan application process, Lendbuzz processes applications in just seconds, whether it’s for new finance or to refinance an existing vehicle.

A Solution for the Widening Financial Gap in Auto Market

Lendbuzz’s solution comes at a critical time in the U.S. automotive market. According to Kelley Blue Book, the average price of a new vehicle has jumped from $38,635 in August 2020 to $48,451 in August of the current year. This widening gap between affordability and cost could render Lendbuzz’s services invaluable.

Accelerated Growth and Future Plans

Following a 135% revenue increase in 2022 and more than an 80% increase in the first half of the current year, Lendbuzz has exceeded $200m in annual revenue run-rate. The company aims to use these new funds to further invest in product innovation and research and development.

Amitay Kalmar, Co-Founder and CEO of Lendbuzz, stated that the company remains committed to leveraging machine learning and alternative data to provide better access to credit. Peter Guetig, Managing Director at Group 1001, expressed his excitement about strengthening their relationship with Lendbuzz, citing the company’s accelerated growth and impressive unit economics.