Philippines-based fin-tech startup LoanSolutions has raised an undisclosed round of funding from a group of international investors led by KK Fund, with participation from other venture capitalist funds and angel investors, including Kickstart Ventures and John Dang, CEO of Zipmatch.
LoanSolutions is an online platform that matches borrowers with financial institutions. Unlike traditional loan comparison portals, it puts borrowers first by using algorithms and hands-on concierge services in the form of loan advisers to ensure that borrowers can secure a competitive loan, says an official release.
KK Fund chose to invest in LoanSolutions because it bridges the gap between online lead generation and traditional loan brokerage in a way that’s more valuable to both borrowers and lenders, said Koichi Saito, Founder and General Managing Partner of KK Fund, a Singapore-based venture capital fund that invests in seed-stage Internet and mobile startups across Southeast Asia, Hong Kong and Taiwan.
Also part of the investing group is Kickstart Ventures, a wholly-owned venture capital subsidiary of Globe Telecom, and backed by SingTel and Ayala Corporation. “Financial inclusion is a key development goal for emerging markets, and as incomes rise, access to financial services should likewise improve, but it hasn’t,” said Kickstart Ventures’ President Minette Navarrete.
“LoanSolutions helps develop financial markets by orchestrating a reliable, data-driven environment for borrowers and lenders to get matches based on verified identities, and appropriate loan products. The Philippines is a great launch market for it,” Navarette added.
On the other hand, ZipMatch CEO John Dang, who made a personal investment, said, “I saw LoanSolutions’ potential as a partner in servicing the needs of Filipino home buyers. The team is dedicated to solving problems in this fast, growing economy. Securing a loan is a challenging step in the home buying process, and we believe that LoanSolutions is completely aligned with our vision.”
Scaling to cope with rising demand
The startup is working with some of the largest banks and financing companies in the Philippines. This funding round will enable it to scale fast enough to keep up with the demand.
“We’re trying to disrupt the lending industry by empowering Filipinos to make educated borrowing decisions,” JP Bisson, CEO and Co-founder of LoanSolutions stated. “There are a lot of potential lenders in the market and by empowering the borrower with choice and then empowering the lenders with data on the borrower, we are able to create real value for all parties involved,” he added.
The company has also partnered with Lenddo, a company that leverages social signals and Big Data to predict borrowing behaviour. The partnership allows it to verify borrowers’ identity and
trustworthiness, which is a key component in bringing down the cost of lending to provide more competitive rates for borrowers.