SK Group's T Map Mobility refueled with $149 mn funding from KB Kookmin

[Photo provided by T Map Mobility]

SK Group’s T Map Mobility attracted 200 billion won ($149 million) funding from KB Kookmin Bank, bringing the commercial bank major onboard as the fourth largest shareholder of the mobility service provider.

T Map Mobility will sell 1,487,111 new common shares at 134,489 won apiece, 200 billion won in total, to KB Kookmin Bank on Sept. 7, according to its regulatory filing made on Monday. This will make KB Kookmin Bank the fourth largest shareholder of T Map Mobility with an 8.3 percent stake.

T Map Mobility is a subsidiary of SK Square, the investment company spun off from the country’s leading wireless carrier SK Telecom.

On Monday, shares of SK square fell 4.07 percent to close at 41,200 won, while those of KB Financial Group, parent of KB Kookmin Bank lost 2.07 percent to 49,750 won. Both T Map Mobility and KB Kookmin Bank are not listed.

T Map Mobility has achieved doubled growth in revenue and its enterprise value is estimated at 2.2 trillion won now, said Lee Jae-hwan, director of the growth strategy team at T Map Mobility. The company has 13.94 million monthly active users and 5.2 million daily active users, Lee added.

T Map Mobility raised 660 billion won over the recent two years, including the latest funding from KB Kookmin Bank, to finance upgrades to mobility services and strengthen the related ecosystem. As a part of its expansion strategy, the company will actively recruit talented software engineers, introduce small loan products for mobility platform businesses, and collaborate with KB Kookmin Bank and other KB Financial Group units on marketing mobility insurance, used car, and payment services.

T Map Mobility has 13.6 million users and KB Kookmin Bank has 9.5 million users of its mobile app, of which 57.7 percent do not overlap to suggest that much of a synergy effect, noted Lee.

Earlier in December, T Map Mobility and KB Kookmin Bank formed a strategic alliance for business collaboration with a focus on environmental, social, and corporate governance (ESG) initiatives and co-existence.

The latest investment from KB Kookmin Bank marks an important starting point for T Map Mobility to build its market presence bigger and stronger, said Song Jae-seung, chief investment officer of SK Square.

Song, however, refrained from sharing the investment company’s IPO plans for T Map Mobility as well as its other units, app market operator One Store and security company SK shieldus that withdrew from the IPO calendar this year due to unfavorable market conditions.

The core value of T Map Mobility is sustainable growth, said Song. The company may face more issues like the case when it acquired local designated driving service provider Logisoft but it will work together with stakeholders for co-existence.

The CIO also promised to seek improvement by actively listening to the voices of both designated driving service providers and users.

The designated drivers’ association in Korea plans to stage a demonstration from Tuesday.

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