Leading South Korean Peer to Peer online lending platform Lendit recently raised 7 billion won or $ 6.2 million from four domestic and foreign venture capital firms such as Crevisse-Lime Venture Fund, Yellowdog, Collaborative Fund and Altos Ventures.
Impact investment for Lendit
The FinTech startup was launched in 2015 inspired by Lending Club, a USA based company. Lendit is now South Korea’s top marketplace lender in the consumer lending segment. The startup has received a cumulative investment of 24.35 billion won or $ 21.61 million, which is largest among the domestic P2P companies since its launch. Specifically, Altos Ventures has invested in the company four consecutive times including the seed money investment of 1.5 billion won or $1.3 million. The nature of current round of investment is of impact investments, where the venture capital firms invest in innovative companies, which can have positive impact on society.
Making P2P lending-borrowing efficient, easier
Lendit offers personal P2P loans through its platform. With Lendit’s advanced risk ranking algorithm and cost- effective operational process, borrowers have access to an appealing interest rate and investors are able to enjoy high and stable yield. The borrowers are offered an APR between 4.5% and 18.0%, and investors an average return of over 10%, which is much more lucrative than a traditional banking system.
The online platform’s loan application process is totally automated. It uses a ‘credit scoring model’ developed to make credit assessments. Rates of Interest are customised as per customer’s requirement and calculated by analysing 250 different data points provided by NICE (National Information & Credit Evaluation), as well as user trends from Lendit’s website.
Kim Sung-joon, CEO of Lendit said, “We will concentrate more on R &D , hiring more manpower and financial expertise based on the investments. We aim to concentrate on providing solutions to financial problems of 1,600 trillion households based on technology.”