Lendbuzz, a direct online auto lender that markets to thin- and no-credit borrowers, landed $150 million in debt and equity financing, the company announced Monday.
The equity funding round was led by 83North, and the debt funding was led by BHI, ConnectOne Bank and IDB Bank, among others. Last year, Lendbuzz secured $30 million in debt funding.
Boston-based Lendbuzz aims to serve borrowers that are “overlooked and underserved by the traditional credit system,” such as ex-patriots and international students, according to a company press release.
Co-founders Amitay Kalmar and Dan Raviv said the funds will be used to grow the car financing platform and support the startup’s ability to provide competitive terms to borrowers. The company partners with dealerships across the country to offer financing options, recently adding California, Florida, New Jersey and New York.
Driven by machine learning and statistical algorithms, Lendbuzz assesses the creditworthiness of consumers who have limited U.S. credit histories and offers auto loans to all visa holders without requiring a Social Security Number. Rather, it looks to borrowers’ educational background and employment history back home, and their financial profiles in both their origin country and the U.S., according to Lendbuzz’s website.
The company taps a market of more than 43 million foreign-born nationals living in the U.S., of whom 27 million are working professionals, according to a release.