GIC to continue investing in fintech Pagaya for three more years

SINGAPORE state investor GIC will continue investing in US-Israeli fintech Pagaya Technologies for three more years, on top of an original five-year term.

Both parties extended their existing funding agreement, whereby GIC will invest in Pagaya’s financing vehicle for the extended period on the same terms as the existing agreement.

The move comes one week after GIC increased its holding of Pagaya’s Class A shares to 9 per cent. GIC is one of the top shareholders of Pagaya, which went public in June 2022 after completing a business combination with EJF Acquisition Corp, a special purpose acquisition company.

The fintech company is looking to expand its financial product offerings through the use of artificial intelligence (AI) technology, said Liew Tzu Mi, GIC’s chief investment officer of fixed income and multi asset.

Founded in 2016, Pagaya uses AI to manage assets for banks, insurance companies, pension funds, asset managers and sovereign wealth funds. It earns most of its revenue through fees paid by institutional investors who buy products enabled by its network.

In 2020, the fintech raised US$102 million in a private funding round led by GIC, with participation from Aflac Global Ventures, Bank Hapoalim’s Poalim Capital Markets, Viola and former American Express chief executive Harvey Golub.