The Newest SPAC That Everyone Is Ignoring

October 28, 2022
Information Technology Investing Strategies

Today the Israeli fintech company, Pagaya announced that they are going public via a SPAC under the ticker EJFA for $8.5B. The terms of the deal are yet to close, but is it expected to be finalized in the near future. While many of you most likely have never heard of this company, that is mostly because they are so young. Founded in 2016 and expected to do $381M in revenue this year, Pagaya is no stranger to insane growth. Going from $0 in revenue to close to $400M in revenue that quickly is unheard of! This will likely be one the most ignored SPAC’s that could be one of the best performers over the last few years. Let’s get into it below:

 


 

Pagaya Overview:

If you’re curious about what Pagaya does, let us quickly give you the overview on them. Pagaya is a fintech company that enables financial institutions to expand their access to more customers through their AI lending network. Pagaya integrates their AI tech with a partner’s infrastructure through an API. If you don’t know what an API is, it is basically a piece of software that allows two applications to talk and interact with each other. Once integrated via this API, Pagaya’s partners are then able to transact “smarter”. Pagaya works across several markets including unsecured consumer credit, auto credit, credit card, point-of-sale, and real estate markets. Pagaya’s is supposedly planning on integrating with other credit solutions such as mortgages and insurance related products,. What they do for these companies is “unlock better results” for their lending solutions. This enables less defaults, and more accurate pricing and representation. They do this by leveraging their AI network to powers an automated process that evaluates 100% of transactions in real-time.

If the above sounded a bit ambiguous, it is by design. Pagaya is a bit secretive about their internal framework. However once the SPAC is finalized and the financials get reported, we’ll soon get much more clarity as to what is happening behind the scenes. In any case though, the company has a stellar reputation is growing like crazy from what we’ve seen in the early numbers. The reason we’re reporting on this now is because we feel that the market has still not realized the totality of this opportunity yet.

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