Kurly’s pre-IPO round attracts investors despite valuation concerns Private equity investors expect online delivery platform to swing to profit in couple of years
Translated by Ryu Ho-joung 공개 2021-05-20 08:12:46
이 기사는 2021년 05월 20일 08:04 thebell 에 표출된 기사입니다.
Several investors are considering investing in Kurly, which operates online grocery delivery platform Market Kurly, against earlier expectations that concerns about the company’s high valuation may reduce interest from investors.Multiple private equity firms are conducting due diligence on Kurly, which is seeking to raise a total of 300 billion won ($264 million) from new investors in a private placement, industry sources said. Morgan Stanley is advising Kurly on the fundraising process.
Kurly is reportedly seeking a pre-money valuation of 3 trillion won, more than triple its valuation of 900 billion won in a previous funding round where the company raised 200 billion won.
As its overnight delivery service gained popularity with online consumers, Kurly’s revenue has grown at an annual average rate of more than 200% for the past five years, reaching 953 billion won in 2020. But the company also saw its operating loss increase in the same period, from 5 billion won in 2015 to 116 billion won in 2020, with a cumulative loss of 270 billion won.
Kurly, which is preparing for an initial public offering, will likely use money from new investors to further expand its business and thus increase enterprise value. The Seoul-based startup is stepping up efforts to diversify beyond grocery, increasing home appliances and beauty product offerings on its platform. It is also planning to expand to include lodging reservation and home appliance rental services.
There were concerns that the company’s high valuation and rising competition from large retail conglomerates might dissuade investors from investing in Kurly. However, several private equity investors interested in buying shares in Kurly reportedly expect it to swing to a profit in two to three years if the company expands its overnight delivery service beyond the Seoul metropolitan area and continues to increase its logistics capacity.
Kurly has not decided on the listing venue. Expectations were high that Kurly could list its shares in the US after the company canceled a contract with Samsung Securities and hired foreign investment banks Goldman Sachs, Morgan Stanley and JP Morgan to lead an IPO earlier this year.
Sophie Kim, founder and chief executive of Kurly, may prefer a US listing because of a dual-class share structure, which is not allowed in South Korea. Kim’s stake in Kurly has been diluted to 6.6% following rounds of funding in the past years. The structure would enable Kim to retain control of the company despite her tiny stake.
Rival Coupang’s successful debut on the New York Stock Exchange in March has apparently also encouraged Kim to turn her eyes to the much bigger US market. However, Kurly may find it difficult to follow suit because of its ever increasing losses.
If Kurly decides to float locally, which will be less costly compared to a US listing, the company would likely list on the junior Kosdaq, which allows listing of loss-making companies with strong growth prospects. (Reporting by Si-eun Park)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 우리금융 "롯데손보 M&A, 과도한 가격 부담 안한다"
- 신한캐피탈, 지속성장 포트폴리오 리밸런싱 체계 강화
- 하나금융, ELS 악재에도 실적 선방…확고한 수익 기반
- 하나금융, 자본비율 하락에도 주주환원 강화 의지
- 국민연금, '역대 최대 1.5조' 출자사업 닻 올렸다
- [도전 직면한 하이브 멀티레이블]하이브, 강한 자율성 보장 '양날의 검' 됐나
- [퍼포먼스&스톡]꺾여버린 기세에…포스코홀딩스, '자사주 소각' 카드 재소환
- [퍼포먼스&스톡]LG엔솔 예견된 실적·주가 하락, 비용 절감 '집중'
- [퍼포먼스&스톡]포스코인터, 컨센서스 웃돌았지만 주가는 '주춤'
- 신한금융, ‘리딩금융’ 재탈환에 주주환원 강화 자신감