HONESTAI, a prominent South Korean startup specializing in AI transformation for the financial sector, has raised $10 million USD (14.4 billion KRW) in its latest funding round. The investment was led by AAK (Asia Advisers Korea), with continued participation from existing shareholder ATON, a company focused on fintech security. This round signifies strong market confidence in HONESTAI amidst a challenging investment climate.
Founded in 2014, AAK is a global family office investment firm that has successfully made over 160 investments, leveraging its expertise in real estate and corporate innovation. Investors have shown particular interest in HONESTAI’s Banking-as-a-Service (BaaS) AI platform, which has demonstrated both scalability and profitability backed by verifiable data. The successful closure of this $10 million deal reinforces the trust investors have in the company’s potential for growth.
This year, HONESTAI reported record growth, navigating a difficult market landscape characterized by stringent lending regulations. The company’s flagship service, HONESTFUND, an AI-powered lending platform for financial institutions, witnessed a remarkable increase in new origination volume, surging 4.2 times in December compared to its launch month. The cumulative connected loan amounts now exceed 1.465 trillion KRW, establishing an unprecedented economy of scale within the fintech sector.
HONESTAI’s growth is not just quantitative; the company has also prioritized qualitative soundness through its proprietary AI risk management solution. Even with the escalating origination volumes, HONESTAI has maintained industry-low delinquency rates, effectively achieving the dual objectives of hypergrowth and ultra-soundness through innovative technology.
In addition to its business accomplishments, HONESTAI received significant recognition this year. The company was awarded the Grand Prize at the “Maeil Business Newspaper Fintech Awards 2025,” highlighting its leading-edge technology in the industry. Furthermore, it has been selected as the lead institution for a next-generation AI national project spearheaded by the Ministry of Science and ICT, which will focus on advancing “causal relationship-based AGI” core technology, reinforcing its future growth trajectories.
The newly secured capital will empower HONESTAI to expedite advancements in AI technology and expand its offerings for financial institutions in the coming year. “HONESTAI has perfected a unique AI platform that revolutionizes financial institutions’ risk management and operational efficiency through sophisticated AI technology,” remarked Hyo-lip Song, CEO of AAK. “We highly value the management team’s execution capability in proving explosive growth and soundness simultaneously despite an uncertain market environment. We are confident they will become a ‘game changer’ leading the financial AX market going forward.”
Sang-hoon Seo, CEO of HONESTAI, emphasized the significance of the investment, stating, “This $10 million investment demonstrates the market’s trust in both the ‘growth velocity’ and ‘technological substance’ that HONESTAI has proven. With the secured funds, we will further widen the gap in our AI financial platform and innovate the financial market through AI technology.”
As HONESTAI continues to expand its footprint in the fintech sector, the latest investment not only highlights its past achievements but also sets the stage for future innovations in AI technology, potentially reshaping the landscape of financial services in the years to come.
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