Fintech Lendai files for court oversight amid debt pressures
The platform that enabled global investors to access U.S. real estate now seeks a temporary trustee after raising $16 million.
Israeli startup Lendai, founded to solve financing challenges for foreign real estate investors seeking to purchase and hold properties in the U.S., filed a petition on Tuesday with the Central District Court requesting the appointment of a temporary trustee. The filing comes after the company accumulated debts of approximately NIS 10 million ($3.2 million).
In the petition, submitted by the fintech company through attorneys Guy Ido, Karen Reichbach-Segal, and Etai Shani of the Gornitzky law firm, Lendai argues that it was created to modernize an outdated, trillion-dollar market using artificial intelligence-based underwriting technology. According to the filing, the company’s platform enabled clients to obtain financing for U.S. investment properties. However, despite multiple efficiency measures, cost reductions, and attempts to raise capital, the company now lacks the financial resources required to continue operating. As a result, it seeks the appointment of a temporary trustee and an order to initiate insolvency proceedings.
In 2022, Lendai announced a $13 million Seed round, as well as $22 million in debt funding. The round was led jointly by Meron Capital and Cardumen Capital, with participation from Discount Capital, Skywell Capital Partners, Mindset Ventures, and Viola Credit.
Lendai was founded in 2019 by CEO Yair Binyamini, CTO Erez Dricker, Chief Data Scientist Tim Mironov, and CFO Boaz Leviatan. The company employed around 30 people at the time, split between Israel, Miami, Toronto, and London.
The petition states that Lendai’s digital underwriting system allowed it to provide competitive financing to real estate investors who are neither U.S. residents nor citizens, while ensuring that all loans were secured by a first lien on the financed properties and by personal guarantees from borrowers.
According to the filing, in early 2023 the company underwent a major shift in response to changes in the U.S. market, transitioning from a financial lender model to a mortgage brokerage model. Under the new structure, the company no longer provides credit directly; instead, it brokers deals between clients and U.S. financial institutions, earning commissions on transactions. This transition rendered most of Lendai’s previous technological developments irrelevant, leading to their reduction or termination.
The petition further notes that following the outbreak of the Swords of Iron war in October 2023, and amid prolonged reserve duty for key executives, fundraising efforts stalled and the company was unable to complete a planned investment round. A subsequent fundraising attempt in the summer of 2024 was carried out under significantly lower terms than prior rounds, yielding only $1.5 million. Despite management’s efforts, revenue growth remained insufficient, forcing continued downsizing until all Israeli employees were ultimately laid off. The court has not yet issued a decision.
Attorney Guy Ido, representing the company, said: “Lendai, which served as the group’s development center, was forced to submit this request due to its financial circumstances. It is important to clarify that all activities of the U.S. subsidiary, Lendai US Inc., continue as usual and provide full, ongoing service to customers worldwide.”
