OAKLAND, Calif. (Reuters) – Lendbuzz, a Boston-based startup that offers auto loans to people who lack credit history, said on Wednesday it raised $60 million in its latest equity funding round and $300 million in debt from Goldman Sachs Group Inc’s consumer arm.
Startups that extend credit to consumers and businesses who have struggled to borrow funds have been mushrooming in recent years, with several receiving sizeable funding injections. Most of the startups aiming to disrupt the banking industry use algorithms to scrape the internet for data that is analyzed to create a personal risk profile.