Lama AI raises $10M to accelerate automated loan originations
Artificial intelligence-native loan origination startup Lama AI Inc. said today it has closed on a $10 million capital infusion, bringing its total amount raised to date to more than $20 million after growing its revenue over threefold in the last year.
The Series A round was led by EJF Ventures and saw participation from new investors Fin Capital and 1st & Main, plus existing investors Viola Ventures, Hetz Ventures and SixThirty, with additional participation from a number of banking industry veterans.
The startup has developed an AI-native loan origination platform that’s aimed at helping smaller community and regional-sized banks digitize their loan operations in an effort to be more competitive with their larger rivals. For many of these banks, it’s a big challenge to be able to grow their capacity to lend money and improve their borrower’s experience without raising their headcounts and compromising their credit discipline. Yet their leaders often face pressure to expand their lending operations as a means of achieving new growth.
One of the best opportunities for such banks lies in the small-business lending industry, including government-guaranteed loans. Lama AI says these kinds of loans are attractive for banks and credit unions and also the small, local businesses they serve, but the economics can be difficult.
