PeopleFund, a Korean digital lender driven by AI, has raised $20 million in a round-headed by Bain Capital, with participation from 500 Global and Kakao Investment.
According to a statement, the fundraising, which follows PeopleFund’s US $64 million series C in December 2021, was solely accessible to the startup’s current investors.
PeopleFund, which was established in 2015, provides loans to customers that are underserved while also providing investment options with around 10% return rates. Through its own engine, it focuses on AI-based risk management capabilities.
According to the business, as of December 2022, it has received around US $240 million from Goldman Sachs, CLSA LendingArk Asia, and Bain Capital to support the deployment of US $1.3 billion in loans.
The additional funding is anticipated to strengthen PeopleFund’s technology and broaden the range of its offerings.
In spite of challenges facing FinTech over the last year, the creator Joey Kim claims that Korea’s consumer financing business is going through a “dramatic shift” towards a mobile-first environment.
“This transition, coupled with the instability of the credit market, is opening up opportunities for tech-based digital lenders and its technologies to highlight our competence compared to traditional financial institutions,” he added.
