U.S.-Israeli fintech firm Pagaya raises $25 million

TEL AVIV (Reuters) - Pagaya, a U.S.-Israeli firm that uses machine learning and big data to manage institutional money, said on Wednesday it raised $25 million in a funding round led by Oak HC/FT.

Pagaya’s seed investor Viola Ventures, Clal Insurance, GF Investments, former American Express CEO Harvey Golub and Thailand’s Siam Commercial Bank.

The funding comes on the heels of Pagaya creating a $100 million consumer credit asset-backed security managed by artificial intelligence, which the company announced in February.

Pagaya manages $450 million for banks, insurance companies, pensions funds, asset managers and sovereign wealth funds.

Prior to this funding round it had raised $20 million in equity as well as $75 million in debt financing from Citi.

The company will use the investment to develop its technology further and pursue new asset classes, such as real estate, auto loans, mortgages and corporate credit.

Reporting by Tova Cohen