One of the newest arrivals to Korea’s $1.5 trillion lending market is PeopleFund, which enables borrowers and investors to connect through a marketplace. Launched in 2017, PeopleFund has now raised $20 million in Series C funding from existing and new investors. As one of the few lending platforms that operates nationally across all 10 provinces, PeopleFund is aiming to provide affordable loans for small business owners and students who might not have access to traditional financing options.
The Bain Capital-led funding round for Kakao shows that investors are still interested in the South Korean digital company despite recent turmoil. This new round of funding brings the total amount raised by Kakao to $5.3 billion, making it one of the most succesful tech companies in the world. Despite this success, Kakao has been facing significant challenges recently, including a bribery scandal and allegations of financial fraud. However, these issues have not diminished investor confidence in the company and its potential future growth
PeopleFund’s impressive fundraising numbers show just how much interest there is in addressing social issues head-on with consenus-building approaches. The likes of Facebook and Twitter have been a big driver of global democracy, but they have also created new challenges like disinformation and fake news. Activists say that more traditional funding sources like venture capitalists are not focused enough on building social good, especially when it comes to large companies. PeopleFund has broken ground by filling this gap, while also pioneering the approach of using debt financing to reduce risk for investors.
In 2021, PeopleFund raised $63.4 million in equity to further develop its credit-scoring system, which was said to be more accurate than other methods available at the time. This investment put PeopleFund well on its way to becoming one of the top players when it came to credit scoring, and helped it expand its reach across various industries.
One goal for PeopleFund is to improve its AI-powered risk management and credit scoring system so that it can be used more widely by borrowers and lenders alike. In addition, the startup plans to launch a B2B service this year that will provide customized credit scoring system services to financial institutions.
PeopleFund’s need for a runway extension to meet one of the requirements for a P2P lending license is an indication that its business is slowly but surely growing. In South Korea, where the market for P2P lending is highly competitive, having a reliable platform that can grow quickly and pass annual requirements will be critical in staying ahead of the competition. With considerable growth potential and an already established customer base, PeopleFund may just have what it takes to become a top player in South Korea’s burgeoning P2P lending marketplace.
With the global public market adjustment alongside changes in the macro environment, digital lenders are expected to shine in 2022. The instability of the credit market is opening up opportunities for technology-based lenders like PeopleFund to compete with traditional financial institutions.
The new PeopleFund platform allows for people to easily invest in a range of small businesses, helping boost their local economy. The platform is
The company says that it continues to see a surge in the number of borrowers and lenders, demonstrates its commitment to empowering people across the globe. The startup adds that this growth is due to its efforts in providing accessible and affordable loans with prompt repayment schedule.
The startup PeopleFund, known for its peer-to-peer lending platform, announced in late December that it had laid off 10% of its staff due to the extremely difficult market conditions. Despite this difficult period, PeopleFund is still able to maintain a healthy business and has been able to successfully close an extension. The layoffs were unavoidable given the incredibly challenging market conditions, but show how important it is for startups to be able to make cuts when necessary in order to maintain a successful operation.
In the rapidly evolving world of technology, Fintech is quickly becoming one of the most popular investment sectors. With new and innovative technologies constantly emerging, there is always something to be explored in this field.
