• Home
  • News
  • The AI lender that’s SPAC-ing for $9b

The AI lender that’s SPAC-ing for $9b

The AI lender that’s SPAC-ing for $9b

Share this article


SPAC-news incoming. FinTech start-up, Pagaya Technologies is listing itself on the Nasdaq Stock Exchange through a merger with the SPAC EJF Acquisition Corp (EJFA). The company is reportedly valued at around $9b and the merger is also set to raise $200m for Pagaya through a private investment offering.

The New York-to-Tel Aviv FinTech platform uses an AI-driven network to analyze large amounts of data. The data is then used for evaluating banking customers who submit credit applications or businesses taking out loans. Its main clients are companies in the consumer loans, automotive finance, and real estate industry. The company’s sales grew by $95m in Q2 2021, while having investors like GIC (Singapore’s sovereign wealth fund) and a former American Express CEO backing it.

Using its AI software, Pagaya is able to offer data insights and automate the lending processes to these clients. The listing comes as a plan to use the cash for expansion into new product lines like mortgages, as well as expansion to new geographies (you see, the more customers the firm has, the more data its AI can use to improve itself).

Why it matters

AI and FinTech seem to be making noise in the listings scene as Pagaya’s going-public comes after shares of AI-lending firm Upstart went public this year. 

akbaraka

Get Smarter
About Investing

Join 35,000+ subscribers and get our 5 min daily newsletter on daily local and international financial news.
akhbaraka
Get Smarter<br/> About Investing

Similar News