LENDIT

LENDIT (lendit.co.kr) is a South Korean fintech company that operates a peer-to-peer (P2P) lending platform, positioning itself as a key player in the nation's burgeoning mid-rate loan market. Established in March 2015 by founder and CEO Sungjoon Kim, the company was inspired by the success of the U.S.-based Lending Club and aims to address the 'interest rate cliff' in the Korean financial market, where consumers who don't qualify for prime bank rates are often forced into high-interest loans from secondary financial institutions. Kim, a graduate of KAIST who also studied at Stanford, brought a technology-first vision to the company, leveraging his background to develop a proprietary credit scoring model.

The firm's core business revolves around its online platform that connects individual and institutional investors with borrowers seeking personal loans. LENDIT utilizes a sophisticated credit evaluation model, built on machine learning and big data analytics, which assesses over 250 different data points to calculate personalized and appropriate interest rates for borrowers, typically ranging from 4.5% to 18.0%. This technology-driven approach allows for a fully automated, non-face-to-face loan application process, reducing operational costs and offering more competitive rates than traditional lenders. For investors, the platform provides an alternative investment opportunity with the potential for higher returns, averaging over 10%, compared to conventional banking products. To mitigate risk for investors, LENDIT emphasizes portfolio diversification, allowing investments as small as 5,000 KRW across numerous bonds.

Revenue is generated through transaction fees. The business model has proven attractive to investors, with LENDIT securing significant funding over multiple rounds, including a Series C of $43.9 million in 2021, bringing its total raised capital to over $60 million from backers like Altos Ventures and H&Q Korea. A significant milestone was the company's registration as an Online Investment-linked Financial company with the Financial Services Commission in June 2021, solidifying its regulatory standing. The company has also focused on enhancing liquidity for its investors, announcing plans for a secondary market called "Lendit Market" to allow the trading of unmatured loan notes.

Keywords: P2P lending, fintech, personal loans, credit scoring model, marketplace lending, South Korea, online investment, mid-rate loans, peer-to-peer finance, machine learning, Sungjoon Kim, alternative investment, consumer finance, digital lending, data-driven lending, loan marketplace, financial technology, Altos Ventures, online lending platform, credit assessment