Pagaya, a global FinTech firm that utilizes Machine Learning and Big Data, has secured USD25 million in funding round to develop its technology further and pursue new asset classes. The funding round was led by US-based venture fund Oak HC/FT, along with additional participation of seed investor Viola Ventures, New York-based GF Investments, Israel’s biggest insurance firm Clal Insurance Ltd, and former American Express chairman and CEO Harvey Golub. According to the reports, the fintech firm, prior to this funding, had hoisted USD 20 million in equity, in addition to a USD75 million in debt funding from Citi.
According to Pagaya, the fresh will use to further develop its technology and pursue new asset classes such as real estate and other fixed-income assets including auto loans, mortgages and corporate credit. The US-Israeli-based firm uses Machine Learning and Big Data to manage institutional money, with a focus on fixed income and alternative credit. Pagaya provides a range of discretionary funds to institutional investors, including pension funds, insurance companies, and banks. Additionally, the company claims that it manages USD 450 million for banks, insurance companies, pension funds, asset managers and sovereign wealth funds. Last year, its investment team has also expanded 20 data scientists and AI specialists number to 30.
In last February, Pagaya announced USD100 million in actively managed asset-backed securities (ABS), with saying that will use AI to select and buy individual loans for the ABS, instead of the traditional ABS mechanics of securitizing a pool of previously assembled assets. In August last year, the company also received USD14 million in a Series B funding round, which was co-led by Oak HC/FT and Chairman and CEO of American Express, Harvey Golub.