TEL AVIV -- Auto financing company Lendbuzz said on Monday it secured $150 million in debt and equity financing, following a $30 million debt funding round that was completed a year ago.
Lendbuzz uses machine learning and algorithms to assess the creditworthiness of consumers with limited U.S. credit history, who are underserved by traditional banks. Operating within the auto lending space, the company partners with auto dealerships to offer customers financing.
The equity funding round was led by 83North with participation from existing investors. The debt funding was led by BHI, the U.S. division of Bank Hapoalim, ConnectOne Bank, Israel Discount Bank subsidiary IDB Bank, Viola Credit and a large insurance company.
In 2018 the company increased its dealership network across the country to include key markets such as California and Florida.
"The capital will allow us to further accelerate our fast-growing car financing platform and enhance our ability to provide the best terms to borrowers that do not have an established U.S. credit history,” CEO and co-founder Amitay Kalmar said in a statement.
Based in Boston and founded by two Israelis, Lendbuzz said it taps into a market of more than 43 million foreign-born nationals living in the United States, of whom 27 million are working professionals.