FinTech startups are changing the future of traditional banking system in Asia and are becoming lucrative investments for funding firms and venture capitalists. No wonder People’s Fund, a Korean FinTech startup, has received a very promising funding of $11 million from six companies.
This funding is said to be the one of the largest in the Series B of investment rounds for a Korean P2P lending company. The funding round was led by the Kakao Pay Corp, a subsidiary of the internet firm Kakaon. The other investors were the Daily Financial Group, 500 Start-Ups, D Three Jubilee Partners, Anvu Asset Management and Yoo Kyung Asset Management.
People’s Fund wants to upgrade its processes
and models to deliver a seamless experience for users.
Peer to Peer Lending Becoming Big Success
People Fund, which was founded in 2015, is a peer to peer or P2P lending platform. The FinTech firm offers loans and other diversified investment products. The startup claims to have recorded a whooping 823 % growth in 2017 over 2016. In September 2018, People Fund recorded high in the loans issued, with about $21.5 million investments or 69 % of the total, coming from institutional investors.
The startup had received $5.7-million in their Series A funding in 2017 from Wooshin Venture Investment Corp, 500 Startups, D3 Jubilee, and DAYLI Financial Group.
The company wants to improve the quality of the P2P loans,
rather than just increasing the amount of the loans.
Funding to fulfil needs for upgrade and growth
With the new infusion of funds, People’s Fund wants to increase its customer base and upgrade their technology. In addition, the startup also wants to concentrate on attracting experts in each area to launch more competitive financial products.
People’s Fund is also building a diversified product portfolio such as personal credit loan products, real estate financing and factoring products of large-sized commerce companies, which are the only domestic banks capable of investing /lending in collaboration with financial institutions.
The startup has also started as a bank-integrated P2P financial platform, developing a secure business structure that is safeguarded against insolvency and fraud. People’s Fund also plans to partner with other FinTech companies to share capabilities and leverage the growth in customer base.
People’s Fund sure has some concrete plans to move ahead in the FinTech industry by optimum utilisation of the latest round of funding.