Korea’s Leading Online Lending Platform, PeopleFund Raises KRW 75.9 Billion Series C Funding Led by Bain Capital
- Biggest amount raised of all lending platforms focused on consumer lending in Korea
- Funding from global financial institutions including Bain Capital, Lending Ark Asia Secured Private Debt Fund, 500 Global
- Goldman Sachs Secures Principal Exposure And Principal Funding For Debt Warehousing Facility With Lending Ark Asia Secured Private Debt Fund
- “We remain committed to accelerating innovation in the non-bank lending industry, positioning ourselves as the premier non-bank financial institution in Korea. “
Seoul, South Korea, Dec 3 2021 / PRNewswire / – PeopleFund (CEO Joey kim), that of South Korea leading online lending platform focused on consumer lending, today announced the successful completion of a KRW 75.9 billion Series C fundraising from global financial institutions including Bain Capital, Lending Ark Asia Secured Private Debt Fund and 500 Global. The company, with a total 100 billion KRW, raised the largest amount of funding among all lending platforms in Korea. Investors now include Bain Capital, Lending Ark Asia Secured Private Debt Fund, 500 Global and KakaoPay. Global investment bank Goldman Sachs, which has secured equity exposure and lead funding for a debt warehousing facility with Lending Ark Asia Secured Private Debt Fund for the platform.
Established in 2015 to solve the structural problem involving the risk of high interest rate loans in the prime lending industry with its technology and data-driven financial services, PeopleFund was one of the first online lenders. in Korea and obtained a market lending license from Korean financial regulators on June 10, 2021. From the end of October 2021, the company’s loan arrangements were KRW1.1666 billion, with a delinquency rate of only 2.06%. The company accounts for 57% of the personal loans in the loan market based on the loan balance. Thanks to its proprietary alternative credit rating system and risk management, it has maintained the lowest level of default rates in the industry.
PeopleFund will use the funds raised to hire AI engineers and acquire alternative data to further improve its credit scoring algorithm while focusing on credit scoring technology with the acquisition of the MyData license scheduled for the end of this year.
“While the major online lenders in the United States have reached billions of dollars on lending platforms such as Upstart and SoFi, online lending in Korea is just beginning,” said Tim chae
, Managing Partner of 500 Global who has participated in all fundraising since the fundraising. “We firmly believe that PeopleFund will become a clear winner with its proven track record, accelerating technological innovations in the non-bank lending industry in Korea. ”
“Today’s milestone reflects the fact that the world’s leading financial institutions see opportunities in the Korean loan market as well as the growth potential of PeopleFund,” said Joey kim, Founder and CEO of PeopleFund. “Over the past 6 years, we have strived to prove the performance of our data-driven risk management technology, which is the essence of consumer credit. Our ambition is to become the No.1 player in the Korean non-bank lending market to provide better lending options for average Koreans underserved by banks.
About PeopleFund Company Inc.
Founded in 2015, PeopleFund is Korea’s leading digital lender focused on consumer credit. Our mission is to give financial freedom to all consumers through more affordable loans and better investment opportunities. Leveraging its proprietary data-driven lending model and eliminating inefficiencies in technology, PeopleFund offers better lending rates to borrowers while maintaining a low rate of loss for the industry to the benefit of retail and institutional investors. PeopleFund is Korea’s first digital lender to overtake $ 1 billion in loan origination and provided an innovative way to invest for nearly 400,000 individual investors. To date, PeopleFund has completed its Series C funding round with a total of $ 100 million equity capital raised. The main investors are Bain Capital, CLSA Capital Partners, 500 Global and Kakao Pay. Goldman Sachs, which secured equity exposure and principal funding for a debt warehousing facility with Lending Ark Asia Secured Private Debt Fund for the platform. For more information visit www.peoplefund.co.kr
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