Bain Capital leads $20m raise of Korean digital lender

PeopleFund, an AI-powered digital lender based in Korea, has secured US$20 million in a round led by Bain Capital, with 500 Global and Kakao Investment joining in.

The fundraise, which comes after PeopleFund’s US$64 million series C in December 2021, was only open to the startup’s existing investors, according to a statement.

PeopleFund’s management team / Photo credit: PeopleFund

Founded in 2015, PeopleFund offers loans to underserved consumers while offering investment opportunities with return rates of roughly 10%. It focuses on AI-based
risk management capabilities via its in-house engine.

The company said that in 2022, it had raised about US$240 million from Goldman Sachs, CLSA LendingArk Asia, and Bain Capital to help it deploy US$1.3 billion in loans as of December.

The new capital is expected to bolster PeopleFund’s tech and expand the scope of its services.

According to founder Joey Kim, Korea’s consumer lending market is experiencing a “dramatic transition” into a mobile-first ecosystem amid headwinds for fintech in the last year.

“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.

See also: The key players in Singapore’s thriving fintech space (update)

Other investors in the round include:

• Access Ventures
• CLSA Capital Partners LendingArk Asia
• D3 Jubilee Partners
• TBT Partners
• IBX Partners