To help meet the financing needs of domestic SMEs, Seoul-based fintech startup Korea Credit Data (KCD) said Thursday that it has raised $24.7 million in Series D expansion funding.
Strategic investors – Fiserv, a Nasdaq-listed fintech company, and LG Uplus, a telecommunications unit of LG Corporation – participated in the expansion round. In total, KCD has raised about $70 million in a Series D round, and about $112 million since its founding in 2016, KCD CEO Kelvin Dongho Kim said.
The latest funding values the company at around $776 million (1.1 trillion KRW). KCD was valued at around $563 million last November when it raised $28.1 million in Series D1.
Kim told TechCrunch the startup wants to solve the difficulties of small merchants by providing digital financial services. In 2017, KCD launched a bookkeeping application for small and medium-sized businesses, called Cash Note, which helps small and medium-sized business owners track a comprehensive overview of cash flow, including revenue, sales and revenue. credit card collection and spending. The application also provides services such as sales ledger and policy information of small and medium-sized businesses. It allows small business owners to connect with other entrepreneurs in their community looking to scale their businesses.
According to Kim, most SME owners with low credit records often have difficulty securing working capital loans and survive with tight cash flow. So the startup added SME-focused lending services to its platform, connecting MSMEs entrepreneurs to access loan programs, Kim said.
KCD claims that they have over 1.7 million registered sellers in Korea and their app has grown into a super app for SME owners.
KCD has acquired Korean startups, including ImU, a POS (point-of-sale) service provider, and Persona, a government subsidiary of an alert service for small and medium-sized businesses. . The company plans to use its new capital to expand its 230-person team and make additional 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.