Mesh Korea gets 'bridge funding' as quick commerce booms

Mesh Korea, an operator of the Vroong delivery service, has raised funding from KB Investment and Korea Development Bank (KDB)'s Scale-up Venture Capital Team.

A logo of Mesh Korea and its delivery application Vroong. [MESH KOREA]

Mesh Korea, operator of the Vroong delivery service, has raised funding from KB Investment and Korea Development Bank (KDB)’s Scale-up Venture Capital Team.

The amount was not disclosed.

The company announced on Wednesday it was a “bridge-round investment,” and that more funding would be raised later in the year.

Both KB Investment and KDB’s Scale-up Venture Capital Team said Mesh Korea’s transition to a multi-functioning logistics company, venturing into the quick commerce market, was promising.

Quick commerce is a method that aims to deliver products to customers within an hour.

“Mesh Korea has the largest market share in last-mile delivery market by leading change and focusing on the business-to-business logistics sector, which is an area with high potential for sustainability and growth,” said Kim Jae-hong, deputy general manager and head of the Private Equity (PE) division at KB Investment & Securities.

“Establishing a joint venture with Oasis Market is expected to strengthen its business portfolio, so we quickly made the investment decision to allow them to expand their quick commerce infrastructure.”

Mesh Korea plans to use the new investment to finance infrastructure needed to operate V Mart, a quick commerce platform under the company’s joint venture with Oasis Market, a fresh food e-commerce.

Mesh Korea will expand its micro-fulfillment center (MFC), purchase electric-delivery vehicles and other key facilities used for quick commerce.

The company will also use the investment to recruit more IT developers, aiming to strengthen its big-data analysis capabilities.

Before the recent investment, Mesh Korea received 100-billion-won ($87 million) of investment this year from a number of companies, including GS Home Shopping and a Hansae-Woori Technology Investment consortium.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]