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Pagaya Technologies

Category: AI Infrastructure

An AI-powered lending network that connects financial institutions (banks, fintechs, lenders) with institutional investors through machine learning-driven credit analysis, enabling expanded credit access without additional risk. Pagaya Technologies was founded in 2016. The company is led by Gal Krubiner. Based in New York, United States. Team size: 500-550. Total funding raised: $146.0M. Latest round: Post-IPO Debt ($75.0M, Mar 2023). Key investors include ["GIC (Singapore Sovereign Wealth Fund)","Oak HC/FT","Tiger Global Management","Whale Rock Capital","Viola Ventures","EJF Capital","Healthcare of Ontario Pension Plan (HOOPP)","G Squared"].

Founded
2016
Headquarters
New York, United States
Team size
500-550
Total funding
$146.0M

Value proposition

Enables lending partners to approve more customers without increasing credit risk by using proprietary AI to evaluate $3.5T+ in loan applications, identifying creditworthy borrowers missed by traditional underwriting, while providing institutional investors access to AI-vetted consumer credit assets at scale.

Products and solutions

["AI-Powered Credit Decisioning Engine","PGY Extended Platform (API integration for lenders)","PGY Best Offer (optimized loan pricing)","PAID Platform (Personal Loan Asset-Backed Securitization)","POSH Platform (Point-of-Sale Home improvement financing)","Forward Flow Funding Programs","Revolving ABS Structures (PAID 2025-REV1)"]

Unique value

Operates the largest AI-powered credit network in the U.S., processing applications with 0% latency through proprietary machine learning algorithms trained on $3.5T+ in loan applications. Unlike traditional credit scoring, Pagaya's AI evaluates borrowers using thousands of data points beyond FICO scores, enabling approval of previously rejected applicants without increasing default risk. Achieved #1 position in U.S. personal loan ABS issuance.

Target customer

Banks, fintech lenders, credit unions, and loan originators seeking to expand credit approval rates; institutional investors (pension funds, insurance companies, asset managers) seeking consumer credit assets

Industries served

["Consumer Lending","Personal Loans","Auto Finance","Point-of-Sale Financing","Residential Real Estate","Asset-Backed Securities","Institutional Investment Management","Banking and Financial Services"]

Technology advantage

Combines real-time AI credit decisioning with a two-sided marketplace connecting 30+ lending partners to 150+ institutional investors. The network effect creates a data flywheel: more loan applications improve AI accuracy, which attracts more lenders and investors, generating more data. API integration enables seamless embedding into partners' existing origination systems. Diversified funding model includes ABS, forward flow agreements, revolving structures, and institutional commitments totaling $8.5B+ raised in 2025. Capital-light business model with 77% of revenue from AI integration fees rather than balance sheet lending.

How they differentiate

Capital-light business model (holds only 5% of loans for regulatory compliance vs competitors holding loans on balance sheet), two-sided AI-powered marketplace connecting 30+ lending partners to 150+ institutional investors, fee-based revenue model (77% from AI integration fees), proprietary AI evaluates thousands of data points beyond FICO scores, processes $3.5T+ in loan applications with #1 position in U.S. personal loan ABS issuance

Main competitors

["Upstart Holdings (UPST)","SoFi Technologies (SOFI)","LendingClub"]

Key partnerships

["30+ Lending Partners (banks, fintechs, credit unions across America)","150+ Institutional Investors (pension funds, insurance companies, asset managers)","26North Partners ($350M revolving ABS facility - PAID 2025-REV1)","Castlelake ($2.5B forward flow agreement for consumer loans)","Sound Point Capital Management ($720M forward flow agreement for POS business)","74+ unique investors participated in PAID platform in 2025","American Bankers Association (network partner)"]

Notable customers

["U.S. Bank","SoFi Technologies","Visa Inc.","Ally Financial","Klarna","Prosper","LendingClub"]

Major milestones

["Founded in Israel in 2016 by Gal Krubiner, Avital Pardo, and Yahav Yulzari","Series D funding of $102M led by GIC in June 2020","Partnership with SoFi announced October 2021 (largest deployment to date)","SPAC merger with EJF Acquisition Corp valued at $8.5B in June 2022","Upsized PIPE financing to $350M in January 2022","Partnership with U.S. Bank announced 2024","Achieved #1 position in U.S. personal loan ABS issuance","First quarterly GAAP profitability in Q1 2024","Record $1.3B revenue with GAAP net income of $81M in full year 2025","Processed over $3.5T in loan applications through AI network","Raised $8.5B in ABS funding in 2025 including $5.4B in personal loan ABS","Expanded to 30+ lending partners and 150+ institutional investors"]

Growth metrics

Public company (NASDAQ: PGY) since June 2022; $1.3B annual revenue (2025, 26% YoY growth); $81M GAAP net income in 2025; 4 consecutive quarters of GAAP profitability; $40B+ in new credit generated across America; 8.5B+ ABS funding in 2025; 30+ lending partners; 150+ institutional investors

Market positioning

Premium AI-driven lending network targeting large banks and fintechs with fewer but higher-profile partners (31 vs Upstart's 100+), trading at significant valuation discount (EV/Revenue 2.12x) compared to peers like Upstart (6.26x) while delivering superior profitability

Geographic focus

United States (primary market), with Israeli roots and operations; headquarters in New York

Patents and IP

No specific patents publicly disclosed in available sources. The company's competitive moat is built on proprietary AI algorithms, vast data network ($3.5T+ applications evaluated), established institutional relationships, and operational infrastructure rather than formal patent protection.

About Gal Krubiner

Extensive experience in investments and wealth management with specialization in credit structured products and asset-backed securities. Previously worked at UBS AG in Investment & Wealth Management, focusing on structuring and distributing sophisticated credit and ABS products. Raised hundreds of millions in assets during his tenure. Co-founded Pagaya in 2016 with vision to leverage AI and machine learning in transforming credit analysis and lending.

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