Balance Hero Raises 30 Billion Won for Small Loans and Expansion in India
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BalanceHero has successfully concluded a funding round, securing around 30 billion won through a combination of CB issuance and loans. The investment drive witnessed participation from several key players, including Hanyang Securities, Tony Investment, Nvestor, Aju IB Investment, OpenWater Investment, and Harang Technology Investment.
In 2016, Balance Hero introduced the “True Balance” app, a platform that provides prepaid mobile phone recharge services to a vast user base of 100 million locals. The app has garnered more than 80 million downloads. Notably, in 2019, the company ventured into the realm of small loans, targeting individuals with low credit scores, leveraging its unique alternative credit scoring system (ACS).
The traction gained by BalanceHero’s short-term loan products, namely “Cash Loan” and “Level Up Loan,” became evident in 2021 as they started to flourish and contribute to the revenue stream. The company achieved profitability towards the end of 2021, marking a significant milestone seven years after its inception. Over the last three years, the company’s loan portfolio expanded by 8.3 times, loan execution volume grew by 7.4 times, and revenue surged by 7.6 times. In 2022, Balance Hero achieved a notable loan portfolio of 29 billion won, a revenue of 694 billion won, and a consolidated operating profit amounting to 107 million won.
Lee Chul-Won, CEO of BalanceHero, highlighted, “Our machine learning-based ACS serves as a robust competitive edge for True Balance, enabling us to cater to 100 million individuals in India who lack credit history or have low credit scores.” He further expressed that with the infusion of this funding, they intend to venture into the mid-credit market, solidify their position as a key player in the small loan sector, and chart an ambitious growth trajectory of 2 to 3 times annually. This strategy aligns with their larger vision of expanding their neo-bank platform and eventual listing.
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