Fintech firm Lendbuzz to file for IPO

Lendbuzz, an auto finance fintech company, is planning to file an IPO prospectus as soon as Friday, according to people familiar with the matter. 

The Boston-based company is targeting a valuation of around $1.5 billion, according to one of the people, who asked not to be named discussing internal matters. That valuation may change as Lendbuzz and its advisors hold discussions with investors. 

The decade-old company uses alternative data and machine learning algorithms to assess the creditworthiness of consumers with limited financial history. Lendbuzz’s loans are funded by asset-backed securitization, warehouse loans from traditional Banks and through the sale of portfolios to institutional investors – mainly insurance companies – that are looking for yield. 

Lendbuzz is aiming to go public amid a wave of fellow fintech companies. Klarna and Chime have each gone public in the last three months. Chime is trading below its initial public offering price, while shares of Klarna are about 7% higher than its IPO, priced earlier in the week. 

Goldman Sachs and JPMorgan are managing Lendbuzz’s offering, according to the people familiar.

Lendbuzz, Goldman and JPMorgan declined to comment.