[Asia Exclusive] "Pinda as the Optimal Loan Platform... Accelerating Preparations for Listing from Next Year"

Interview with Lee Hyemin, CEO of Finda
Leading Domestic Loan Comparison Platform
Rarely Profitable in the Industry Since 2020
Accelerating IPO Preparations Starting Next Year

Lee Hyemin, CEO of Finda, is being interviewed by Asia Economy. Photo by Moon Honam munonam@

[Interview with Jeong Jaehyung, Head of Finance Department at Asia Economy; Summary by Reporter Bu Aeri] "Our goal is to be the company that creates the optimal cash flow for me at the lowest possible cost."

Lee Hyemin, CEO of Finda, stated in an interview with Asia Economy on the 27th at the company’s headquarters in Gangnam-gu, Seoul, "We will create decision-making processes that individuals find too complex to handle, based on technology and data." Finda, a fintech company, is a leading player in the domestic loan comparison platform sector. Users utilize loan comparison applications (apps) to find places offering even slightly lower interest rates. Finda has the largest number of partnerships in the industry, totaling 63 affiliated companies, and since launching its app in July 2019, the total approved loan amount has exceeded 900 trillion KRW.

Finda plans to accelerate preparations for its IPO starting next year. After recently returning from a business trip to Silicon Valley in the U.S. for investment attraction, CEO Lee said, "Going public is an essential process in terms of enabling flexible fundraising," adding, "It’s not far off, and we are working hard to prepare." Finda is also open to overseas expansion possibilities. Unusually for a fintech company, Finda is profitable and has recently received investment proposals from some investors. Lee said, "We are considering various scenarios," and added, "While it’s difficult to disclose the company valuation, it is higher than the previously reported 600 billion KRW."

- This is your fourth startup. How did an ordinary office worker get into entrepreneurship?

▲My husband (Hwang Heeseung, CEO of Job Planet) had a big influence. He started a business when he was a senior in college. As my husband and his friends started businesses, my interest grew. Many of the friends who started businesses with us were international students who didn’t speak Korean well, so I helped them. I also helped create sales materials, and seeing immediate responses was fun. I also subscribed regularly to the U.S. IT media TechCrunch, actively sought information, and attended conferences, which sparked my interest. When I worked at STX Group, I was involved in investor relations (IR), so I was familiar with pitching strategies and reviewing business models.

- I’m curious about your startup history. There is a saying that you shouldn’t start a business without a trustworthy Chief Technology Officer (CTO).

▲Until my fourth startup, I never started with a CTO. It’s a very difficult part. I’m from a liberal arts background, and although I know many IT developers and CTOs from other companies, I didn’t have someone to work with. When recruiting developers, I went through the same process as raising investment. It’s very difficult to attract developers, so I met CTOs through headhunting, recommendations from investors, or acquaintances.

- What were the results of your recent U.S. business trip?

▲I was able to meet companies that had never invested in Asia or Korea before. It was a valuable time to build relationships with companies experienced in investing in finance. Since they met us impressed by Finda’s performance, it gave me a sense of pride. I also met with the CEO of Credit Karma, a U.S. fintech company, and we exchanged strategies. Credit Karma was acquired by Intuit for $7 billion (about 9 trillion KRW). I learned many lessons from various co-lenders active in markets around the world.

Hyemin Lee, CEO of Finda

- Are there similar services like ‘Finda’ in the U.S.? What are the differences?

▲Credit Karma and NerdWallet are representative examples. These two companies create databases that allow partner customers to attract clients. In the U.S., there aren’t as many online-only products as in Korea, so a service model that can send many customers to partner financial institutions is competitive. If the core role of these two companies is to attract many customers and pass them to financial institutions, Finda similarly attracts customers but must work closely with financial institution partners to ensure immediate loan approval and customer satisfaction.

- How is the investment attraction going?

▲There are several scenarios. We have already received some proposals. There are options to proceed quickly and swiftly, and also considerations for timing and scale if we take longer, including an IPO. We started with the U.S. business trip and are currently in various discussions. It’s difficult to disclose the company valuation immediately, but it is higher than the 600 billion KRW reported in the media.

- How much total investment have you received so far?

▲About 11.5 billion KRW. We have been profitable since 2020. The service itself does not require massive manpower or high costs. Therefore, we have not raised large-scale funds. For the first four years of the seven years, we struggled because we couldn’t achieve product-market fit, and after achieving it, we received one round of investment.

- How would you describe Finda in one sentence?

▲Simply put, it’s a ‘loan platform.’ You can get loans, and those who already have loans can view their loan information. It’s a company that helps any customer have the most optimal loan portfolio. It enables customers who need loans to get the required amount at the lowest cost. Even customers with existing loans face many variables that change loan conditions. Due to the structure of Korean finance, it’s difficult for individuals to judge and proceed, so Finda continuously finds and maintains the lowest loan costs.

- You promised to give 50,000 KRW if customers don’t manage to refinance under better conditions by the end of the year. Is this feasible amid rising interest rates?

▲It’s a challenging attempt. Many customers feel anxious and can’t even consider refinancing. We plan to continue cooperating with financial institutions to create better conditions that reduce interest. It’s actually a pilot program, and if it succeeds, we plan to expand the campaign to more customers.

- You recently expanded and relocated your office. How is that going?

▲In the early days of the startup in 2015, we were in a shared office with 30 employees until early last year. This year, the number increased to 115, and we plan to hire up to 200, so considering various factors, we opened our own office.

- Are there many people from the traditional financial sector?

▲There are quite a few. Although it’s not a requirement, since the service integrates with financial institutions, some employees have relevant experience, while others do not. Since we create services from the customer’s perspective, flexible thinking is very important. Those with rigid perspectives from the financial sector may find it difficult to adapt. Just as our work style is a ‘custom work system,’ compensation structures vary individually. Some prefer stock options, others prefer cash, so it varies.

- Earlier, an employee called you ‘Hyemin-nim.’

▲We add ‘-nim’ to everyone’s name regardless of rank. We believe communication should be very horizontal. We practice reverse mentoring, where juniors directly make suggestions to the company, excluding seniors. However, decision-making cannot be horizontal, so we also consider how to make it vertical and efficient.

- What are your plans for IPO and overseas expansion?

▲We don’t have a specific timeline but are preparing for an IPO and expect to work harder starting next year. Going public is essential for flexible large-scale fundraising. Especially in Korea, unlike Credit Karma’s M&A situation, we are considering various cases. It’s not very far off. We don’t have concrete overseas expansion plans but do not want to close the possibility. Even domestically, we believe the market size for growth is at least 30 to 100 times Finda’s current revenue.

- What is Finda’s ultimate goal?

▲If you use Finda for life, we want to be the company that creates the optimal cash flow at the lowest cost. It’s a concept of expanding the loan portfolio, but ultimately, in terms of cash flow, there will be investments, savings, and various methods if needed. It’s insufficient to define us simply as a personal financial assistant. Even if you hardly use cash, you cannot live without cash flow, so we will try various approaches. Individuals need to decide cash flow based on data, but it’s too complex to do everything. There are many variables and products. We want to enable optimal cash flow based on Finda’s perspective, technology, and customer data.

▶Profile of CEO Lee Hyemin

▲Born 1984 ▲Korea University, Department of Spanish Language and Literature ▲2017?2011 STX Strategic Business Planning Office ▲2011?2012 Co-founder and CSO of Rocket Internet/Glossier Box ▲2012?2013 Co-founder and CEO of People & Co ▲2012?2015 Co-founder and CEO of Noom Korea ▲2015?Present Co-founder and Co-CEO of Finda