In South Korea, there are about 7.3 million small and medium enterprises (SMEs) – defined as companies with fewer than 250 employees. Their combined workforce is 83.1% of all company employees in the country, a total of 17.1 million people, according to information from the OECD.
To help meet the financial needs of the country’s SMEs, Seoul-based fintech startup Korea Credit Data (KCD) said Thursday it has raised $24.7 million in Series D extension financing.
Strategic investors – Fiserv, a Nasdaq-listed fintech company, and LG Uplus, the phone company of LG Corporation – participated in the extension round. In total, KCD has raised about $70 million in its Series D and about $112 million since the start of 2016, KCD CEO Kelvin Dongho Kim said.
The latest funding values the company at approximately $776 million (1.1 trillion KRW). KCD was valued at around $563 million in November last year when it raised $28.1 million in its Series D1 round.
The startup wants to address the pain points of small merchants by providing digital financial services, Kim told TechCrunch. In 2017, KCD launched its accounting software for small and medium businesses, 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 program also provides services such as SME sales accounting and policy information. It allows small business owners to connect with other entrepreneurs in their communities who are looking to grow their businesses.
Most SME owners with poor 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 SME entrepreneurs to access capital loan programs, Kim said.
KCD claims to have more than 1.7 million registered merchants in South Korea and its app has grown into a great app among small and medium business owners.
KCD has acquired South Korean startups, including ImU, a POS (point of sale) service provider, and Persona, a government subsidy alert service for small and medium-sized businesses. The company plans to use the new funding to expand its 230-strong team 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.
Updates: Korea Credit Data has acquired Fiserve Korea as part of its strategic partnership, according to an announcement from Fiserv on October 21, 2022.