Kakao invests in U.S. NFT startup Superplastic to enhance 3D, metaverse business

South Korea’s top platform service provider Kakao Corp. joined a $20 million funding series of U.S.-based non-fungible token (NFT) startup and character-based product developer Superplastic as it explores business opportunities in the bourgeoning NFT and metaverse segment.

According to multiple sources from the financial investment industry on Sunday, Kakao and Kakao Entertainment have recently participated in the $20 million Series A fund-raising by Superplastic. The Vermont-based company creates virtual celeb characters in a 3D world and is engaged in NFT-based art auction business.

Superplastic has earned over $7 million from its NFT business this year with its virtual celeb characters. It drew $38 million in cumulative funding from investors including Kakao, Google Ventures, Galaxy Digital, and Hollywood celebrities including Justin Timberlake.

Superplastic creates virtual celeb characters through NFT and their animated content, said an unnamed official from Kakao Entertainment. Kakao has decided to invest in the company as part of efforts to seek new business chances through partnerships with overseas IT companies across diverse technologies.

NFT is a one-of-a-kind digital asset with unique representation that cannot be replaced with other tokens.

Global companies are increasingly advancing into the NFT market that has been growing rapidly. E-commerce player eBay now allows a virtual currency payment for official NFT digital asset sale such as trading card, image, and video clips at its platform.

Samsung Electronics’ investment firm Samsung NEXT also joined a $9 million Series A funding raised by U.S. NFT trading platform SuperRare.

Shares of Kakao were trading 0.4 percent higher at 126,000 won ($107.3) on Monday morning.

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