Fintech co Pagaya announces a value of 8.5 billion. SPAC value

Fintech co Pagaya announces a value of 8.5 billion.  SPAC value

The Israeli fintech company Pagaya has announced a merger agreement with acquisition company (SPAC) EJF Acquisition Corp. (Nasdaq: EJFA). The deal will see Pagaya listed on the Nasdaq for a valuation of $ 8.5 billion.

Upon completion of the merger, Pagaya will receive $ 288 million in gross proceeds from EJFA’s cash in trust, subject to non-redemption, and an additional $ 200 million in private equity placement (PIPE) from entities affiliated with EJFA.

Pagaya has developed a platform that allows lenders to analyze credit applications using artificial intelligence and machine learning technologies. The P2P platform makes financial transactions more efficient, allowing lenders to get more credit and allowing more people to borrow more money.

The company was founded in 2016 by CEO Gal Krubiner, Yahav Yulzari and Avital Pardo. Pagaya has so far raised $ 146 million including $ 102 million in a Series D funding round last year led by the Singapore Sovereign Wealth Fund (GIC). The company reportedly manages over $ 2 billion in various debt options.

Krubiner said: “This is an important milestone not only for us but also for our partners, their customers and the wider financial services industry. Older systems are historically broken and inefficient. We identified a significant opportunity to address the inefficiency of the current system by constructing a network powered by our proprietary AI technology.Our combination with EJFA allows Pagaya to combine our expertise with EJF’s deep financial experience.Together we can continue to expand a leading artificial intelligence network to help our partners grow their business and better serve their customers. “

With offices in New York and Tel Aviv, Pagaya focuses on the US debt market and has 350 employees. Customers include banks, credit card companies and car finance companies.

Published by Globes, Israel’s business news – en.globes.co.il – September 15, 2021

Copyright by Globes Publisher Itonut (1983) Ltd. 2021

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