Market Kurly raises 8th round of pre-IPO fund, valuation exceeds $3 bn

Kurly Inc., the operator of South Korea’s pioneering fresh food platform Market Kurly, has drawn 250 billion won ($212 million) in pre-IPO funding, pushing its corporate value above 4 trillion won ahead of its Kospi debut planned for the first half of next year.

According to investment bank sources on Wednesday, Kurly has notified its existing shareholders of its latest fund-raising of 250 billion won, with a share sold each at 100,000 won.

During the Series F round that raised 225.4 billion won in July, its corporate value was estimated at 2.5 trillion won. Unlike the past fund-raising, a single international financial investor bought the shares offered in latest round. The unidentified investor is not among the existing shareholders. Kurly raised a total of $482 million over seven rounds from 14 investors. Aspex Management and CJ Logistics joined through the seventh round.

The sources projected the platform has been valued for 4 trillion won by the new investor, up 60 percent from July valuation.

Market Kurly started out with the initial capital of 5 billion won in 2015 and has been refueled with new funds annually – 17 billion won in 2016, 67 billion won in 2018, 135 billion in 2019, and 200 billion won last year.

Its sales more than doubled to 950.8 billion won last year from a year ago period amid stay-at-home environment under pandemic. Revenue in the first half already matched annual figure of last year. Cumulative user count exceeded 8 million as of May.

The company has acquired payment gateway startup Paybot in September to offer own payment system and create an “open market” identity where vendors are invited to come onboard to offer their produces directly on the platform and allow a wider choice in groceries beyond fresh food.

Investment bank sources point out Kurly would have to address capital erosion issue before its initial public offering. The company thinks once preferred shares are converted to common shares through IPO, the red would turn to the black in its capital balance.

The company has recruited NH Investment & Securities, Korea Investment & Securities, and JP Morgan as joint book runners for its IPO on the Kospi by June next year.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]