Korean startup The Check offers controlling stake after tapping strong interest in A Series

[Source: The Check Inc.]

The Check Inc., a comprehensive business management solution startup for small merchants in South Korea which drew heated response in its first fundraising, is offering a controlling stake to gain a jumpstart for fast expansion.

The company, which raised 10.2 billion won ($8.7 million) in Series A funding round in March, more than doubling the usual 3 to 5 billion won in the fledgling fundraising, is bypassing the usual investment rounds to scale up in one shot.

Founder and chief executive officer Kim Chae-min plans to round up about 50 percent ownership stake including his own and management right. The remaining shares held by KB Securities and other investors are not on sale.

Momens Investment Advisory advising the sale sent out investment teasers to prospective buyers last week, according to industry sources on Sunday.

Based on the first fundraising response, the stake could be worth 60 billion won.

The company offers book-keeping solution for small businesses such as credit card payment processing history check up, tax tracking, and employee management. The namesake app The Check has attracted 200,000 memberships in 11 months since its launch in April last year. The membership count is now at 260,000.

Kim is said to be seeking to sell his approximately 50 percent stake in The Check plus management rights to help the company secure more fund for aggressive investment to upgrade service amid intensifying competition from rivals. A similar local app CashNote operated by Korea Credit Data has recently emerged as a leading financial service app.

So far, financial service and technology companies reportedly have expressed interest in The Check's stake due to the startup's large membership base.

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