Lendai, a fintech company that is changing the way foreign investors access U.S. financing without the need for a U.S. credit history or residency, announced $35 million in equity and debt seed funding. The round was led jointly by Meron Capital and Cardumen Capital, with participation from Discount Capital, Skywell Capital Partners, Mindset Ventures, and Viola Credit.
Upgrading financial instruments to the digital age
A few years ago, Lendai’s CFO and Credit Manager, Boaz Leviatan, was talking to a friend about the different real estate opportunities in America. His friend already had real estate assets in Arizona but was interested in leveraging them and acquiring even more. He stumbled upon a problem because he was not American; without being American, he couldn't get a mortgage loan. Obviously, this led Leviatan to realize that his friend probably isn't the only one stuck in this situation; there are many people who have a difficult time finding financing solutions for their investment properties in the United States. And so, the idea to build Lendai was created; the goal would be to enable private clients to enjoy simple and cost-effective financing for their private investment properties in the U.S. so that their overall profits can increase.
Lendai is a fintech online platform that works as a direct lender for financing U.S. properties for foreign investors. Not only is their solution upgrading the very outdated trillion-dollar market, but they are also levelling the playing field for global investors in the U.S. residential real estate market by leveraging technology. Their unique AI algorithm technology utilizes data points while simultaneously evaluating all loan aspects by assessing the creditworthiness of foreign investors, the likelihood of recouping money should the borrower default, and the value and cash flow of the property at present and in the future. Their platform facilitates quick approval times of as little as 5 minutes to pre-approve a loan and full approval within 14 days which is a third of the average time it takes a traditional U.S. lender. What’s more, Lendai provides its customers with complete loan pricing transparency– exactly how much and at what rate. Finally, foreign investors can afford American properties while realtors and investment organizations open a new stream of revenue.
Lendai's global network of real estate agents, property management companies, loan brokers, marketplaces, developers, lawyers, and accountants extend from Australia, Asia, the Middle East, Europe, UK, Canada and, of course, the United States. With the financing from the seed investment, Lendai will continue to scale rapidly to meet the market demand. They’ll expand their services to more U.S. states and launch new financing loan programs which will increase loan size, bolster offerings, and allow borrowers in more countries to receive larger loans with faster turnaround times. The diversity of loans offered will also increase to include Airbnb-specific loans, second homes, and vacation properties. The platform will also be able to incorporate a toolkit of services beyond loans that will help borrowers to scale up their business, gain a meaningful competitive edge, and manage their properties in a better way.
Lendai was founded in 2019 by Yair Benyamini (CEO), Erez Dricker (CTO), Tim Mironov (Chief Data Scientist) and Boaz Leviatan (CFO).