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§ Public · New York City, NY, USA
Pagaya is a technology company.
Pagaya operates an artificial intelligence-driven network enhancing credit decision-making for financial institutions. It leverages machine learning to analyze extensive datasets, enabling lenders to approve more applicants with precision while managing risk. The technology integrates into existing origination systems, facilitating real-time evaluations and expanding lending opportunities.
Founded in 2016 by Gal Krubiner, Avital Pardo, and Yahav Yulzari, Pagaya arose from the insight that traditional credit underwriting models often overlooked creditworthy individuals. The founders aimed to build a more inclusive financial ecosystem by deploying advanced AI, uncovering hidden credit potential and broadening access to financial products.
Pagaya primarily serves financial institutions, including banks and fintechs, integrating its network to optimize their lending processes. The company’s vision is to connect more people with financial opportunities, empowering partners to grow their businesses smarter and faster. Fostering a comprehensive credit evaluation approach, Pagaya seeks to benefit lenders and borrowers.
Pagaya has raised $597.0M across 8 funding rounds.
Pagaya has raised $597.0M in total across 8 funding rounds.
Pagaya Technologies is an Israeli-American financial technology company that builds an AI-powered platform to evaluate loan applications, enabling banks and lenders to approve more customers using advanced machine learning and big data.[1][2] It serves financial institutions as a B2B partner, solving the problem of rigid legacy credit checks by providing "second-chance" lending that boosts approval rates across segments like personal loans, auto financing, credit cards, buy-now-pay-later, and real estate.[1][4] Pagaya embeds its decision engine via APIs into partners' workflows, allowing seamless data transfer for rejected applications, and has originated $28 billion in loans while assessing $2.6 trillion in applications by 2024, with Q3 2024 showing 9% lending volume growth to $2.6 billion and 28% revenue growth to $279 million.[1][4]
Pagaya was founded in Israel in 2016 by Gal Krubiner (CEO), Avital Pardo (CTO), and Yahav Yulzari (Chief Revenue Officer), who aimed to disrupt traditional credit scoring with AI and machine learning.[1][2][3] Initially operating as an asset manager for institutional clients, the team developed a data-driven credit model to modernize lending.[1] Key early traction came from integrating into lenders' digital workflows, starting with personal loans via partners like Prosper and Avant, evolving to banks such as LendingClub, SoFi, and U.S. Bank.[4] The company went public in June 2022 via a SPAC merger on the NYSE at an $8.5 billion valuation, after raising over $145 million in VC funding.[4]
Pagaya rides the AI-driven fintech wave, capitalizing on the shift from legacy underwriting to data-rich models that unlock credit for underserved applicants amid rising demand for inclusive lending.[1][2] Timing aligns with post-pandemic credit tightening and BNPL/auto loan growth, where traditional FICO scores fall short, enabling Pagaya to boost partner volumes by 9% YoY despite market headwinds.[4] Market forces like regulatory pushes for fair lending and investor appetite for asset-backed securities favor its B2B model, influencing the ecosystem by partnering with banks/non-banks and funding via institutions, thus democratizing credit access without lenders bearing full risk.[1][4][5]
Pagaya's momentum—28% revenue growth, new deals like Blue Owl—positions it to scale beyond personal loans into auto, BNPL, and potentially mortgages/insurance, leveraging its $2.6 trillion data moat.[1][2][4] Trends like AI regulation, economic recovery, and embedded finance will shape its path, with risks from loan defaults or competition, but its partner network and workflow integration provide defensibility. Expect expanded influence as AI redefines credit, turning rejected applicants into opportunities and solidifying Pagaya as a core lending infrastructure player—modernizing finance one decision at a time.[1][4]
Pagaya has raised $597.0M across 8 funding rounds. Most recently, it raised $305.0M Debt in February 2024.
Pagaya has raised $597.0M in total across 8 funding rounds.
Pagaya's investors include Dan Worrell, Israel Discount Bank, J.P. Morgan, UBS, Valley Bank, Annie Lamont, 7wire Ventures, Ben Robbins, Nyca Partners, Oak HC/FT, Optum Ventures, Silvertech Ventures.