Hyperlocal secondhand exchange Daangn's valuation passes $2.6 bn with Series D funding

[Graphics by Lee Soo-min and Song Ji-yoon]

South Korea’s pioneering hyperlocal secondhand trading platform Daangn Market, known as Karrot Market outside the country, has raised 180 billion won ($157.39 million) in Series D funding, from which it has earned valuation of near 3 trillion won.

According to investment banking industry sources, Daangn Market has secured 180 billion won in Series D funding, far exceeding its initial goal of 100 billion won. The funding round is set to be closed by the end of this month.

The fourth fund-raising scheme newly brought on Aspex Management, a Hong Kong-based investment manager which also invested in fresh food delivery platform Market Kurly and additionally from existing investors Altos Ventures, Goodwater Capital, Strong Ventures, SoftBank Ventures, Capstone Partners and Kakao Ventures.

The new investment values Daangn at three trillion won, a 10-fold increase from its valuation of 200 billion to 300 billion won during Series C funding held in 2019 in which it raised 40 billion won, an industry source familiar with the matter said.

Daangn Market was launched in 2015, but towers over other secondhand exchanges.

The number of its subscribers has recently topped 20 million with its weekly active users surpassing 10 million.

The secondhand marketplace is rapidly growing led by the millennial and Generation Z groups. The local used goods trading market which was valued at 4 trillion won in 2008 has grown more than five times to reach 20 trillion won last year, according to Hana Institute of Finance. It is estimated to expand over 20 percent this year.

With its hyperlocal business concept, Daangn Market aims to grow beyond a secondhand trading platform to become a community-based communication channel. The app offers neighborhood-centered features through which users living in the same district can share information and tips on daily lives.

Daangn Market will use the new investment to expand into the global market. It is already providing services in the U.K., the U.S. and Canada under the name “Karrot” and launched a beta service in Japan last month.

With Daangn’s latest funding, the competition in the local secondhand trading platform market is likely to become even fiercer.

In March last year, Bungae Jangteo has secured 56 billion won investment from local private equity fund Praxis Capital Partners and Lotte Shopping, operator of department stores under Lotte Group, is said to be mulling to acquire a 95 percent stake in Joonggonara, the country’s pioneer in online second-hand goods exchange on Naver.

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