The funding will help PeopleFund hire AI engineers and acquire alternative data. Here are the top-line bullets you need to know.
PeopleFund, a South Korean peer-to-peer (P2P) lending platform, has raised $63.4M in a Series C round that drew participation from Bain Capital, Goldman Sachs, 500 Global, and CLSA Capital Partners.
HOW’S THE COMPANY PERFORMING?
- South Korea-based PeopleFund connects lenders with borrowers.
- The platform facilitates the generation of personal credit scores and offers investment products directly to customers via KakaoTalk.
- PeopleFund reportedly lends at an average interest rate of 11.25% per annum, a rate 3-4% lower than that of other non-bank lenders.
- As of October 2021, PeopleFund had managed over $1B in loans, with a delinquency rate of 2.06%.
WHY DOES THE MARKET MATTER?
- The global peer-to-peer (P2P) lending market is expected to reach a value of $578B by 2028, growing at a CAGR of 28.2%, according to Verified Market Research.
- The South Korean personal credit lending market is currently valued at $67B, according to PeopleFund.
- Increasing demand for alternative financing options among small and medium-sized enterprises in developing countries is contributing to market growth.