SEOUL—Investors including Hillhouse Capital Group and U.S. venture capitalist Sequoia Capital are set to invest in South Korea’s largest food-delivery company by users at a $2.7 billion (U.S.) valuation, according to a person familiar with the matter.
Hillhouse, Sequoia and Singapore sovereign-wealth fund GIC Pte. Ltd. are likely to close the roughly $320 million investment with Seoul-based Woowa Brothers Corp. by the end of the month, the person said. Hillhouse had previously invested in Woowa more than two years ago.
Woowa, founded in 2010, operates Baedal Minjok, which means “delivery nation.” The new capital will fund expansion into markets such as Vietnam and the development of delivery robots, the person said.
Including the new investment, Woowa has raised more than 500 billion South Korean won, or roughly $450 million.
Delivery startups have attracted the attention of marquee investors, even though many have yet to turn a profit.
In November, Zume Inc., the pizza-delivery and food-logistics startup based in Mountain View, Calif., brought in $375 million from the SoftBank Vision Fund, at a valuation of roughly $2.25 billion. DoorDash Inc. more than doubled its valuation in August, to $4 billion, when Coatue Management LLC and DST Global invested $250 million in the San Francisco-based food-delivery startup.
China’s Meituan-Dianping, backed by social-media giant Tencent Holdings Ltd., went public in September in Hong Kong. The company, whose app also offers other services such as travel bookings, has a market value of about $31.5 billion.
South Korea’s Woowa, like similar startups, has broadened its ambitions. It created a service that picks up orders from popular restaurants or cafes that previously didn’t offer delivery. Woowa has boosted investments in artificial intelligence.
Its Baedal Minjok food-delivery app, which operates only in South Korea, has seen orders quadruple from five million a month in early 2015 to more than 20 million by July of this year. The number of active monthly users during the same period more than doubled, from three million to eight million. The company’s profit margin is in the midteens, according to the person familiar with the matter.
Hillhouse first invested roughly $50 million in Woowa in 2016. Hillhouse, an Asian private-equity firm, has backed many prominent internet and consumer companies, including making an early bet on Tencent and New York-listed search engine Baidu Inc.
Goldman Sachs Group Inc. advised Woowa on the transaction.
- Indian economy based on sound fundamentals, will soon reach $5 trillion: PM Modi in South Korea
- Zomato, Swiggy, UberEats reduce discounts as food delivery market grows cold
- South Korea October exports fall most in 4 years but government says worst may be over
- South Korea accuses Japan of waging 'economic war'
- UPDATE 1-South Korea exports dive as China woes dent sales, darken outlook
- South Korea exports dive as China woes dent sales, darken outlook
- Japan resumes exports of chemicals South Korea's chipmakers need. But tensions remain
- Scarred by trade war, South Korea's stocks whipped by oil shock
- RPT-Scarred by trade war, South Korea's stocks whipped by oil shock
- Startups Weekly: Chinese investors double down on African startups
- Booze Delivery Startup Thirstie Raises $1.1M
- Bank of Korea cuts rates, keeps door open for more as economy loses steam
- Bank of Korea holds rates, markets price in further easing in 2020
- South Koreans fret government is throwing good money after bad
- New Horizons Global Partners Announces International Expansion With Corporate Services Offerings In Six New Countries
- S.Korea stocks shed over 2% as Japan trade spat spirals
- Retail sales grow in S. Korea during October
- South Korean inflation hits record low, fans case for more rate cuts
- Global shares advance amid hopes for US-China trade deal
- Global markets cautious as trade war talks grind on
Global investors back South Korea’s top food-delivery startup have 617 words, post on www.thestar.com at December 20, 2018. This is cached page on Talk Vietnam. If you want remove this page, please contact us.