Habit Factory Secures 35 Billion Won in Series D Funding...Targets Japan After U.S. Expansion

AI-based fintech company Habit Factory announced on October 23 that it has secured 35 billion won in Series D funding.

This investment round was led by Z Venture Capital (ZVC) and Smilegate Investment. Z Venture Capital is a corporate venture capital (CVC) arm under LY Corporation, a joint venture between Naver and SoftBank's holding company, A Holdings.

Z Venture Capital, Korea Development Bank, IBK Venture Investment, and Kolon Investment joined as new investors, while existing investors KB Investment, Shinhan Venture Investment, and Smilegate Investment participated in follow-on investments. Since its founding, the company has raised a cumulative total of 69.4 billion won.

Habit Factory plans to use the newly raised capital to focus on overseas business, particularly in the United States and Japan. The company explained that it will aggressively expand its existing business in the U.S. mortgage market, which is experiencing a favorable environment due to declining mortgage rates.

Starting with insurance and mortgages, the company will also accelerate its entry into the Japanese financial market. Based on market research, Habit Factory chose Japan as its next destination because the structure of its domestic insurance and U.S. mortgage industries is similar. The company aims to solve problems in a market where customers face significant difficulties due to legacy (traditional) business systems.

As the operator of the AI financial platform "Signal Planner," Habit Factory currently provides insurance, pension, and household account services in Korea. Its revenue in the first half of the year increased by 76.8% compared to the previous year. In the United States, the company obtained a license as a specialized mortgage bank in 2023, with cumulative loan volume reaching 203.1 billion won.

Habit Factory is recognized for its competitiveness, having achieved cost reduction and productivity improvement across its services through the application of AI. The company recently began the process of selecting an underwriter and plans to accelerate preparations for an initial public offering (IPO).

Saji Hye, Director at Z Venture Capital, stated, "Habit Factory is a company with high growth potential in the global financial brokerage sector, based on its leading experience and technological capabilities in digital transformation of the domestic insurance brokerage industry. We look forward to Habit Factory creating synergy in overseas markets through ZVC's global network."

Habit Factory co-CEO Lee Dongik said, "We believe this investment demonstrates the value of improving inefficiencies in the financial market. We will continue to introduce services that resonate globally, leveraging the know-how we have accumulated to set positive precedents."