The company has been focusing on providing reasonable financing solutions for local developers who have limited access to development loans from the financial institutions, forcing them to rely on private financing with high interest rates that are often over 30% per annum.
The most notable aspect of Terafunding’s Series B round is that the largest financial groups in Korea now become shareholders: KB Investment, Hana Ventures, and IBK Industrial Bank. Including Woori Bank in Series A, four out of the six leading Korean financial groups are now Terafunding’s shareholders.
Also, Woomi Construction, a mid-tier residential construction company which is also famous as a leading Prop-tech investor, participated as a strategic investor, implying further collaboration in the mid-to-small sized residential development industry.
Industry experts commented that the successful closing of Terafunding’s Series B round is a clear evidence that the company’s business model and growth potential are well acknowledged and appreciated by both Fin(ance) and Prop(erty) leaders, and is especially meaningful with the timely passage of the P2P bill in the National Assembly’s political affairs committee to establish adequate legal framework to regulate the industry.
With its most recent round, Terafunding will be focusing on acquiring talent from the real estate, finance, and IT sectors while working to accelerate its advancement on project screening systems and risk management processes.
As of July 31, Terafunding has originated more than US$700 Million in cumulative basis, and fully repaid around US$500 Million, making it the unrivaled market leader in the P2P financing industry.
SOURCE Tera Fintech