BOSTON--(BUSINESS WIRE)--Lendbuzz, an AI-based fintech company that helps consumers obtain better access to credit when purchasing a vehicle, announced today that it has closed a $100 million credit facility with MUFG. The additional warehouse capacity will fuel Lendbuzz’s continued loan origination growth.
The expansion increases Lendbuzz’s capacity and ability to grow the number of borrowers its proprietary AI-based auto finance platform serves. The platform enables Lendbuzz to continue to focus on assessing the creditworthiness of consumers across the credit spectrum, many of whom are underserved by traditional banks and offering its consumers a modern, digital lending experience. This group includes those with no credit, thin credit, and near prime, and accounts for over 40 percent of the adult U.S. population.
“This expansion further strengthens our funding capabilities and ability to execute our strategic growth plans,” said George Sclavos, Chief Financial Officer at Lendbuzz. “MUFG has been a long-standing partner to Lendbuzz, and we are excited for this opportunity to deepen the relationship. It demonstrates the confidence our partners have in Lendbuzz and our continued focus on exceptional underwriting and credit decisioning.”
"We invested in Lendbuzz to support their mission to bring AI-powered auto financing to the underserved and we are excited to expand our partnership," said Mayank Shiromani, Deputy Chief Investment Officer at MUFG Innovation Partners (MUIP).
MUFG Innovation Partners Co., Ltd. (MUIP), a corporate venture capital fund and a wholly owned subsidiary of MUFG, invested in Lendbuzz in 2021.
About Lendbuzz
Lendbuzz is an AI-based financial technology company that helps consumers obtain better access to credit when purchasing a vehicle. Powered by alternative data and machine learning algorithms, Lendbuzz can assess the creditworthiness of consumers with limited credit history—a group underserved by traditional banks. Through our auto dealership partners, Lendbuzz offers consumers attractive financing solutions while opening up opportunities for those dealerships to serve a more diverse customer base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.
About MUIP
MUIP was established in January 2019 as the corporate venture capital of Japan’s leading financial group, MUFG, to promote its open innovation strategy. MUIP currently runs 5 funds (about 650 million USD in total), working on strategic investments in startups globally and driving business collaboration between the startups and MUFG group companies. For more information, visit https://www.ip.mufg.jp/.
