‘Unicorn’ Korea Credit Data Secures $75.7 Million Funding from Morgan Stanley Tactical Value

Amid a prolonged startup funding winter, the Korean startup ecosystem is experiencing a resurgence of optimism as Fintech startup Korea Credit Data (KCD) achieves a remarkable milestone. With a recent infusion of 100 billion won ($75.7 million) from a single investor, US-based Morgan Stanley Tactical Value, KCD’s valuation has soared to an impressive 1.3 trillion won ($1 billion).

In October 2022, the company secured $24.7 million in a Series D round from financial giants Fiserv and LG U+. With this extension, KCD’s total funding surpassed $110 million, contributing to the company’s valuation reaching approximately $776 million. KCD had announced that it had achieved the ‘unicorn’ startup status (an unlisted company with a corporate value of over 1 trillion won) with its valuation in October exceeding 1 trillion won.

KCD attracted about 35 billion won ($26 million) of investment from strategic investors including LG Uplus In April 2016, after six years of establishment, the corporate value exceeded 1 trillion won. The latest infusion of funds from Morgan Stanley Tactical Value makes KCD a over $ 1 billion company.

This achievement is a testament to KCD’s strategic focus on providing digital financial services to small and medium-sized enterprises (SMEs) in South Korea. Over just five years, KCD’s valuation has grown a staggering 25-fold, showcasing the startup’s rapid rise and profound impact on the country’s fintech landscape.

A Pioneer in SME-Focused Fintech

Founded in 2016, Korea Credit Data bolsters the growth and efficiency of SMEs in South Korea by granting them access to cutting-edge digital financial services. The company’s flagship product, Cash Note, a bookkeeping app designed for SME owners and self-employed individuals, has played a pivotal role in this endeavor. Cash Note enables users to seamlessly manage cash flow, expenditures, sales, and credit card settlements, providing valuable insights into their financial health. This revolutionary tool has garnered immense popularity, with over 1.2 million businesses benefiting from its features.

Strategic Investors and Partnerships

Strategic investments from established financial institutions and venture capital firms have paved KCD’s journey to becoming a unicorn. Notable names in KCD’s investor lineup include KB Kookmin Bank, Shinhan Card, Samsung Fire and Marine, and Kakao. Venture capital investment has also played a significant role, with Pavilion, a venture-specialized fund of Singapore’s sovereign wealth fund Temasek, and K-Unicorn Investment participating.

Fostering Digital Transformation

Despite the nation’s reputation for technological advancement, many SMEs still rely on traditional analog ledger systems. KCD’s Cash Note has offered these businesses a digital lifeline to streamline their financial operations and gain actionable insights. With over half of its 2 million registered users utilizing Cash Note’s features, KCD has positioned itself as a driving force behind the digital transformation of small businesses.

A Vision for the Future

Morgan Stanley Tactical Value’s investment recognizes KCD’s extensive SME infrastructure services. The company will be expediating the digital transition of Korea’s SME financial analog system, utilizing the fresh funding. Kim Dong-ho, CEO of Korea Credit Data, said, “By combining the funds and know-how of global investors with KCD’s data, we will introduce services that help self-employed business owners manage their stores and money flow.” KCD aims to set up a bank specialized in SMEs with data secured from its Cash Note platform. “KCD is playing an important role in not only the SME world but also Korea’s macroeconomy,” said Kim Hyun-sung, vice president of Morgan Stanley Tactical Value.

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