Pagaya raises $102 million Series D round

Financial technology company Pagaya announced a $102 million Series D funding round from several investors including SCB Group, GF Investments, Poalim Capital Markets (PCM), GIC, Bank Hapoalim, Aflac.

Founded in 2016, the Tel Aviv-based company has since raised over $221 million and has grown to manage over $1.6 billion of assets for banks, insurance companies, pensions funds, asset managers, and sovereign wealth funds entirely with its sophisticated AI.

“The world is changing quickly and investors need a performance edge – more and more are turning to Pagaya. We continue to unlock unprecedented value with our AI even during extreme market stress. Closing a round of this magnitude, with such a high-quality group of investors, is a testament to the hard work of the Pagaya team.” – Gal Krubiner, Pagaya’s CEO and co-founder.

Pagaya effectively re-opened the consumer credit asset-backed security (ABS) market in May with a $200 million ABS fully managed by its AI — the first issuance amongst marketplace lenders in months, and the firm’s seventh deal to date. The firm’s total ABS issuance is now over $1 billion in just a year and a half.

“It’s extraordinary to see the Pagaya team deliver on their promise to bring in a new era of asset management using unparalleled technology. The firm continues to significantly and effectively innovate in a space that has failed to evolve for decades. Pagaya is driving the future of asset management.” – Harvey Golub, Retired Chairman and CEO of American Express, and Pagaya board member.

Pagaya will use the investment to hire more top tier data scientists, develop its technology further, and continue its pursuit of new asset classes, such as real estate and other fixed-income assets like auto loans, mortgages, and corporate credit.