Google Play mobile download button
Apple IOS mobile download button
Google Play mobile download button
Apple IOS mobile download button
HomeBreaking NewsP2P lending platform PeopleFund raises $20M Series C extension led by Bain...

P2P lending platform PeopleFund raises $20M Series C extension led by Bain Capital

'Quick read' news summary

PeopleFund, a South Korean marketplace that connects borrowers and investors to enable lending, has recently added $20 million to its $63.4 million Series C.

Existing backer Bain Capital led the extension, with participation from previous investors such as Access Ventures, CLSA Capital Partners Lending Ark Asia, D3 Jubilee Partners, 500 Global, Kakao Investment, TBT Partners and IBX Partners.

The additional funding brings PeopleFund’s total raised to around $100 million in equity. Apart from the capital, PeopleFund also secured $240 million in debt financing in 2022 from Goldman Sachs, CLSA Lending Ark Asia and Bain Capital. The company did not disclose its valuation when asked.

In 2021, PeopleFund raised $63.4 million (75.9 billion won) in equity for Series C, also led by Bain Capital, to further develop its credit-scoring system.

PeopleFund plans to use its new capital to continue to advance its AI-powered risk management and credit scoring system for its users, which includes borrowers and lenders. On top of that, the startup aims to launch a B2B service this year to provide AI-enabled customized credit scoring system services to financial institutions.

Another reason for its runway extension is to meet one of the requirements for a P2P lending license, according to industry sources. In South Korea, P2P lending marketplaces must pass yearly requirements to get a license from Financial Services Commission (FSC) to run their business. To operate its business in 2023, PeopleFund, which reports that it is making a profit loss, must own a minimum capital ranging from $400,000 to $2.4 million, depending on its loan balance. (The loan balance is the remaining amount of loans made by PeopleFund that the borrowers have not yet repaid.) PeopleFund’s loan balance was $264.3 million (326.8 billion

PeopleFund, a South Korean marketplace that connects borrowers and investors to enable lending, has recently added $20 million to its $63.4 million Series C. Existing backer Bain Capital led the extension, with participation from previous investors such as Access Ventures, CLSA Capital Partners Lending Ark Asia, D3 Jubilee Partners, 500 Global, Kakao Investment, TBT Partners and IBX Partners. Apart from the capital, PeopleFund also secured $240 million in debt financing in 2022 from Goldman Sachs, CLSA Lending Ark Asia and Bain Capital.

Read different perspectives