Global technology company Pagaya has recently reported that it has successfully completed a PAID 2025-5 transaction, raising USD 500 million through an asset-backed securitisation (ABS) supported by consumer loans processed on its network.

Pagaya noted that the deal exceeded initial expectations, increasing from its original target of USD 400 million. The ABS received a AAA rating from Kroll Bond Rating Agency (KBRA), and it marks the fifth fully-prefunded PAID transaction for Pagaya in 2025, continuing their strong performance across various ABS programs.

This latest transaction involved participation from 30 unique investors, including five new ones. Four of these new investors are making their debut with Pagaya’s capital markets program. The company plans to continue expanding its investor base and financing flexibility through its ABS and forward-flow programs, which will support the development of lending partners and institutional investors.

Since 2018, Pagaya has completed 75 securitisations, raising nearly USD 31 billion to fund loans originated via their network. Representatives from Pagaya commented that this latest PAID transaction highlights the consistent interest of investors and the capabilities of Pagaya’s network in generating repeatable securitisation opportunities across different asset classes.

Additionally, in late May 2025, Pagaya issued USD 300 million in asset-backed securities to support its expansion into the BNPL industry. The company planned to use this funding to finance BNPL loans originating from Klarna, a move that represents an evolution for Pagaya, which has previously focused on unsecured personal and auto loans.

Key Activities

Through its offerings, Pagaya provides financial products and services aimed at supporting individuals and enhancing the broader ecosystem. Utilising machine learning, a data network, and an AI-enabled approach, the company delivers consumer credit and residential real estate products to both its partners and their customers.