Fintech Firm Lendbuzz Shifts IPO Plans From Nasdaq to Tel Aviv Stock Exchange
Lendbuzz, a Boston-based fintech company founded by Israeli entrepreneurs Amitai Kalmar and Dr. Dan Raviv, is reconsidering its planned initial public offering (IPO) on Nasdaq and is now preparing for a potential IPO on the Tel Aviv Stock Exchange (TASE). This would mark the first time a company that initially sought to list on Nasdaq reverses course to list in Tel Aviv.
The company, which offers a digital platform for auto financing in the U.S. targeting consumers underserved by traditional banks, filed a prospectus last September aiming for a valuation of up to $1.5 billion. However, due to recent shifts in the U.S. IPO market, where investor focus has narrowed to mega-cap tech firms in AI, semiconductors, and infrastructure, Lendbuzz has faced challenges attracting sufficient demand at its target valuation. Ilan Paz, CEO of Barclays Israel, noted that investors are currently prioritizing very large companies, making the U.S. public market less accessible for mid-sized firms.
In contrast, the median valuation for new listings on Nasdaq is about $6 billion, while in Tel Aviv it is roughly $1 billion, making the Israeli market more relevant for companies like Lendbuzz that are too large to be acquired easily but too small to compete for investor attention in the U.S. Despite this, Lendbuzz may need to accept a lower valuation in Tel Aviv, possibly around $1 billion or less, due to a cooling IPO market there as well.
Lendbuzz’s platform uses AI and alternative data to assess credit risk and provide competitive loans to customers who lack access to traditional credit. The company reported $173 million in revenue and $11.1 million in net profit in the first half of 2025, showing strong growth and profitability. It operates through over 2,100 U.S. car dealerships and partners with American banks that provide the financing.
The company has raised hundreds of millions from prominent investors including Group 1001, 83North, O.G. Venture Partners, Arkin Group, Mivtach Shamir, and HighSage Ventures. Legal advisors are currently preparing a Hebrew prospectus with updated financials, and if the IPO proceeds, it could take place within months. The move could signal a strategic shift, positioning Tel Aviv as a viable alternative for mid-sized tech companies seeking public funding, especially amid the current U.S. market dynamics.
