Pagaya Technologies
| Company type | Public |
|---|---|
| Industry | Financial technology |
| Founded | 2016 |
| Founder | Gal Krubiner, Avital Pardo, Yahav Yulzari |
| Headquarters | New York City , United States |
Area served | United States |
Key people | Gal Krubiner (CEO) |
| Products | AI-powered credit evaluation platform |
Number of employees | 553 (2024) |
| Website | pagaya |
Pagaya Technologies is a financial technology firm with Israeli-American roots, headquartered in New York City. The company employs artificial intelligence (AI) to revolutionize credit evaluation processes for loan applications. Since its 2022 debut on the New York Stock Exchange, Pagaya has reported revenues reaching US$1.03 billion by 2024. By that year, it had analyzed loan applications totaling nearly US$2.6 trillion and facilitated loans amounting to approximately US$28 billion, predominantly serving banks and financial institutions.
Established in 2016 by Gal Krubiner, Avital Pardo, and Yahav Yulzari, Pagaya’s mission centers on utilizing AI to improve credit risk assessments, primarily targeting leading U.S. banking institutions for technology integration. As of 2024, the company employs 553 personnel and oversees assets valued at US$1.29 billion. Despite recording a net loss of US$401.4 million in 2024, Pagaya persists in broadening its presence within the fintech industry.
History
Founded in Israel in 2016 by Gal Krubiner, Avital Pardo, and Yahav Yulzari, Pagaya Technologies was created to apply AI and machine learning techniques to lending processes, aiming to replace conventional credit evaluation methods. Initially functioning as an asset manager catering to institutional clients, Pagaya developed a credit model driven by data analytics. Early-stage consumer loans were funded through private capital and asset-backed securities (ABS). By 2020, the company managed assets exceeding US$1.6 billion for banks and institutions and had issued ABS surpassing US$1 billion. Among its prominent investors was Singapore’s sovereign wealth fund GIC.
In September 2021, Pagaya announced a merger with EJF Acquisition Corp., a U.S.-based acquisition entity. This special purpose acquisition company (SPAC) transaction valued Pagaya at roughly US$8.5 billion, facilitating its public listing in June 2022. The company’s development and administrative teams were distributed between Tel Aviv and New York, with workforce numbers approaching 1,000 by 2022.
In July 2024, Pagaya agreed to purchase Theorem Technology, a U.S. fund manager specializing in machine learning applications for credit funds. The acquisition was finalized in October 2024, elevating Pagaya’s assets under management beyond US$3 billion and broadening its funding avenues while enhancing investor access to credit receivables through its platform. Earlier in January 2024, the company revealed plans to relocate its headquarters to New York to better align with its U.S.-focused partners and sales operations while retaining technical development functions in Tel Aviv.
During the 2025 Mind the Tech conference held in New York, CEO Gal Krubiner presented a strategic vision for Pagaya’s platform to serve all major U.S. banks, positioning the firm as a conduit linking Israeli technological innovation with the American financial sector.
Business model
Pagaya functions as a B2B platform that connects banks, lenders, and institutional investors. Its primary product is an AI-powered decision engine that evaluates loan applications by analyzing extensive datasets through machine learning algorithms. Integrated via APIs, when a banking partner declines an application, anonymized information is forwarded to Pagaya’s system. The platform then reassesses creditworthiness, issues an independent offer, and assumes responsibility for credit default risk; meanwhile, the bank maintains the customer relationship and collects servicing fees. Funding sources include forward flow agreements, issuance of asset-backed securities (ABS), and proprietary credit funds. For example, a 2024 arrangement with asset manager Castlelake permits the purchase of up to US$1 billion in consumer loans, thereby expanding refinancing capabilities.
The platform emphasizes “second-chance” lending to increase approval rates for partners by leveraging an extensive database comprising applications worth trillions of dollars and incorporating alternative credit indicators beyond traditional metrics. Pagaya’s ecosystem covers unsecured consumer loans, auto financing, credit cards, “buy now, pay later” retail options, and real estate loans; future expansions aim at mortgages and insurance sectors. Its partners include Prosper, LendingClub, SoFi, U.S. Bank, Ally, Klarna, Visa, along with leading auto lenders. The company generates most of its income from brokerage and servicing fees while transferring the majority of credit risk to institutional investors. However, it has faced scrutiny over allegations that it obscures losses by utilizing investor capital.
External links
- Articles with short description
- Financial services firms in Israel
- Financial services firms headquartered in New York City
- Israeli enterprises founded in 2016
- American enterprises founded in 2016
- Initial public offerings in 2022
- Companies traded on the New York Stock Exchange
- American companies established in 2016