Pagaya’s $102M Series D Targets Asset Management, New Technologies

Financial technology company Pagaya brought in a $102 million Series D funding round led by GIC, Singapore’s sovereign wealth fund, to boost its data-driven investment strategies.

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Others participating in the round included Aflac Global Ventures, Aflac Inc.’s venture capital holding company; Poalim Capital Markets, the investment banking arm of Bank Hapoalim; Viola; Oak HC/FT; former Chairman and CEO of American Express Harvey Golub; Clal Insurance Ltd.; GF Investments; and Siam Commercial Bank. Pagaya has raised a total of $147 million since its inception in 2016, Gal Krubiner, Pagaya’s co-founder and CEO, told Crunchbase News.

Pagaya, headquartered in New York and Tel Aviv, uses artificial intelligence to select investments for clients, such as institutions. It now manages more than $1.6 billion for banks, insurance companies, pensions funds, asset managers and sovereign wealth funds, Krubiner said.

Previously, the company closed on a $25 million Series C in March 2019, he said. At that time, the company was focused on the growth of the business, which included increasing its employee base from 40 to 110, he added.

With the new funding, Pagaya will continue to hire, adding 50 more top-tier data scientists and doubling its U.S. employees to 30, invest in its technology, and expand into new asset classes, such as consumer credit, real estate, auto loans and mortgages, Krubiner said.

In addition, Krubiner explained that Pagaya has issued more than $1 billion in asset-backed security (ABS) in a year and a half, closing $200 million consumer credit ABS in May alone.

Next up, Krubiner is aiming toward $5 billion to $10 billion in assets under management, which he said will move the company from a startup to a top-tier technology-based company.

“We are focusing on consumer credit, auto loans, moving into other financial markets,” he said. “The biggest task will be helping institutional clients to invest in different things, and hiring in the United States and Israel, as well as expanding our presence on the West Coast.”

Illustration: Li-Anne Dias