Korea Credit Data raises about 35 billion won, reaches unicorn status

Korea Credit Data announced on the 6th that it has become a unicorn after raising about 35 billion won at a valuation of 1.1 trillion won from strategic investors, including LG Uplus. Just over six years after its founding in April 2016, KCD’s valuation has surpassed 1 trillion won. Its cumulative funding totals about 160 billion won.

KCD is the clear market leader in business management services for self-employed people and small businesses. Built around Cashnote, its business management service launched in May 2017, the company offers a range of services for small businesses, including point-of-sale (POS) systems, B2B food supply, a dedicated community, and support policy information. Through six affiliated companies, including its headquarters, KCD serves 1.7 million businesses nationwide as of October—88% of the 1.92 million active credit card merchants at the end of last year.

KCD began with an understanding of the challenges facing small businesses. Most owners have relatively low credit scores and limited cash flow. Launched in May 2017, Cashnote initially provided essential figures for tracking cash flow, including sales, credit card settlements, and expenses. It has since been adopted by more than 1.2 million businesses and grown into a platform offering services tailored to small businesses, including bookkeeping, finance, a marketplace, policy information, and a community.

KCD’s strategy of expanding a business community for small businesses has also contributed to its growth into a unicorn. In 2021, it acquired Persona, which operates Bizbot, a policy alert service for small businesses and SMEs, and Korea F&B Partners, which operates Pujim, a B2B food supply service. Earlier this year, it acquired POS manufacturer IMU. These companies all provide services or products for small businesses. KCD has expanded its community by bringing together companies that serve this shared customer base.

KCD has grown its business ecosystem for small businesses through equity partnerships with strategic investors. All investors in this round, including LG Uplus, acquired stakes in KCD as strategic investors. KCD’s existing strategic investors include GS, KB Kookmin Bank, Shinhan Card, Samsung Fire & Marine Insurance, and Kakao. Its venture capital investors include Pavilion, a venture fund backed by Singapore sovereign wealth fund Temasek, and K-Unicorn Investment, a domestic fund specializing in pre-unicorn investments.

“Our equity investment in Korea Credit Data and business partnership will enable us to offer more differentiated products and services to SOHO customers,” said Hwang Hyun-sik, CEO of LG Uplus. “By combining our strengths, we will create a new standard for digital infrastructure in small businesses.”

“Becoming a unicorn is just the starting point for making every moment of running a business easier, faster, and smarter,” said Kim Dong-ho, CEO of Korea Credit Data. “We will continue doing our best to make every step of starting, operating, and growing a neighborhood business easier for its owner.”