Fiserv, LG back Korea Credit Data as SMB-focused fintech startup raises another $24.7M • TechCrunch
In South Korea, there are around 7.3 million small and medium-sized enterprises (SMEs) – defined as businesses with fewer than 250 employees. Their workforce combined makes up 83.1% of all corporate employees in the country, totaling around 17.1 million people, according to OECD data.
To help meet the financial needs of SMEs in the country, Seoul-based fintech startup Korea Credit Data (KCD) said Thursday it has raised $24.7 million in Series D expansion funding.
Strategic investors – Fiserv, a Nasdaq-listed fintech company, and LG Uplus, a phone unit of LG Corporation – participated in the expansion round. In total, KCD has raised about $70 million in its Series D round and about $112 million since its inception in 2016, KCD CEO Kelvin Dongho Kim said.
The latest funding values the company at approximately $776 million (KRW 1.1 trillion). KCD was valued at around $563 million last November when it raised $28.1 million in Series D1.
The startup wants to address small merchants’ pain points by offering digital financial services, Kim told TechCrunch. In 2017, KCD launched its bookkeeping app for SMBs, called Cash Note, which helps small and medium business owners track a comprehensive overview of cash flow, including income, credit card sales and expenses. The app also offers services such as SMB’s sales ledger and policy information. It enables small business owners to connect with other entrepreneurs in their communities looking to scale their businesses.
Most small and medium-sized business owners with low credit often struggle to secure working capital loans and survive tight cash flow, according to Kim. So the startup added SME-focused lending services to its platform, connecting MSME entrepreneurs to access capital loan programs, Kim said.
KCD claims that it has more than 1.7 million registered merchants in South Korea, and the app has grown into a super app among small and medium business owners.
KCD has acquired South Korean startups, including ImU, a point of sale (POS) service provider, and Persona, a government subsidiary notification service for SMEs. The company plans to use its fresh capital to expand its team of 230 and make further acquisitions.
Its previous backers include KB Kookmin Bank, KB Securities, GS Holdings, KT Investment, Pavilion Capital, Shinhan Card, Samsung Fire & Marine Insurance, Kakao and Kclavis.
