“Korea Credit Data Secures $75.7 Million Investment from Morgan Stanley MSTV, Achieving $1 Billion Valuation

Korea Credit Data (KCD) has secured a $75.7 million investment from Morgan Stanley Tactical Value (MSTV). The company is valued at approximately $1 billion (KRW 1.3 trillion), up from approximately $832.58 (KRW 1.1 trillion) at its last funding round in October. Approximately $196.8 million has been invested to date.

KCD’s flagship service, Cashnote, has become a “super app” for local business owners. Starting with a daily accounting function, it has expanded into areas such as personalised finance, business-to-business marketplaces, policy information to support small businesses, and a dedicated community. It also provides small business service infrastructure such as POS (point of sale) and VAN (value-added network) through subsidiaries such as IMU and Korea Payment Networks.

KCD is a leading provider of services to small businesses in Korea. KCD provides services to approximately 2 million businesses nationwide (as of August) through five subsidiaries, including its head office. This is an increase of 300,000 businesses since the last investment round (October last year). KCD is the only start-up providing services and infrastructure to 2 million offline businesses in Korea. Revenue has also grown rapidly, surpassing last year’s annual revenue in the first half of the year alone. It has grown more than four times year-on-year.

Dongho Kim, CEO of KCD, said, “We are very pleased that KCD’s business model of a business ecosystem centered on local shop owners has been recognized by a leading global financial investor.” “By combining the funding and expertise of global investors with our data, we will introduce services that help shop owners run their businesses and improve their cash flow.”

Hyun-sung Kim, Managing Director of MSTV, said: “KCD’s business has been of great interest to investors for some time. It is a socially valuable company that plays an important role in the Korean economy, not only for the small business owners who use its services, but also on a macroeconomic level. This investment is also a great opportunity for MSTV to contribute to the growth of Korea’s neighbourhood shop owners”. “We’re excited to work with the KCD team and look forward to leveraging the infrastructure and tools they’ve built over the years.”

MSTV, a New York-based private credit & equity investor, is part of Morgan Stanley Investment Management (MSIM), which invests in a variety of asset classes and industries around the world through flexible investment structures in rapidly changing market environments. This is MSTV’s first investment in a Korean company and marks its entry into the South Korean capital markets, which are growing rapidly as a key market in Asia.