Insider Brief
- Lendbuzz has secured $345 million, consisting of $45 million in equity funding and $300 million in a forward flow facility, with Group 1001 spearheading the investment round alongside other participants like 83North and MUFG Innovation Partners.
- The financial tech company, which uses AI, alternative data, and machine learning for auto loans, will channel the funds towards product innovation, R&D, and technology to better cater to consumers and dealership partners.
- Over the past ten quarters, Lendbuzz has shown consistent profitability with its revenue surging by 135% in 2022 and over 80% in the first half of 2023, surpassing a $200 million annual revenue run-rate.
PRESS RELEASE — BOSTON/October 4, 2023— (BUSINESS WIRE) — Lendbuzz, a financial technology company, that uses alternative data, machine learning, and deep neural networks to provide auto loans for a wide spectrum of borrowers announces today that they raised $345 million in a combination of $45 million in equity funding and $300 million in a forward flow facility.
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.
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,” said Amitay Kalmar, Co-Founder and CEO of Lendbuzz. “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.”
Lendbuzz’s business model continues to differentiate itself by generating both strong earnings and high growth. Across ten consecutive profitable quarters, Lendbuzz’s revenue increased 135% in 2022, and over 80% in the first half of 2023, exceeding $200 million of annual revenue run-rate.
“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.”
About Lendbuzz
Lendbuzz is an AI-powered auto finance platform that helps consumers obtain better access to credit when purchasing a car. Powered by alternative data and machine-learning algorithms, Lendbuzz can assess the creditworthiness of consumers across the credit spectrum, many of whom are underserved by traditional banks. Lendbuzz supports the success of its dealership partners through proprietary software products that streamline the loan application and loan origination processes, helping dealerships better serve a more diverse client base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.
About Group 1001
Group 1001 Insurance Holdings, LLC (“Group 1001”) is a technology-driven financial services company with a mission to empower customers, employees, and communities by making innovative products accessible to everyone. Group 1001 strives to demystify how insurance and annuity products are purchased today by leveraging technology to provide intuitive financial solutions for all Americans. As part of its mission, Group 1001 invests in strategic partnerships to connect with and transform communities through education and sports. As of June 30, 2023, Group 1001 had combined assets under management of approximately $60.9 billion and comprises the following brands: Delaware Life, Gainbridge®, Clear Spring Health, Clear Spring Property and Casualty Group, and Clear Spring Life.
Contacts
Media
Griffin Gallagher
KWT Global
ggallagher@kwtglobal.com
