이 기사는 2021년 12월 24일 07:49 thebell 에 표출된 기사입니다.

GS Retail is injecting a large amount of money into its subsidiary AboutPet by participating in a rights issue and lending money to boost its competitiveness in the fast growing pet industry, according to industry sources.

The South Korean convenience store franchise operator has invested a total of 22 billion won ($18 million) in AboutPet so far this year. GS Retail and broadcasting company SBS jointly invested 21.5 billion won in the company in August, of which 8 billion won was provided by GS Retail. It invested an additiona 8 billion won in the company by participating in AboutPet’s rights issue in the same month, and lent 6 billion won to the company this month.

Most of the proceeds are expected to be used to enhance the company’s competitiveness. GS Retail plans to transform AboutPet from an online pet supplies store into a pet platform that combines commerce and contents.

AboutPet has stepped up efforts to expand its business to be transformed into a pet platform. A plan to merge with The 6th Day was approved at AboutPet’s shareholders meeting last month. The startup provides a subscription service that delivers new pet supplies designed by vets every month.

Earlier this month, AboutPet applied AiTEMS, a customized product recommendation system, to its online shopping mall, in partnership with the country’s tech giant Naver. AiTEMS recommends products by analyzing consumers’ interest and purchase history. The two companies plan to expand the AiTEMS service, provide pet care consultation and pet supplies, and expand logistics cooperation in the future.

Industry insiders said that GS Retail is seeking to use AboutPet as a stepping stone amid its push to pioneer the pet market as part of its new growth engine. GS Retail said it is reviewing a possible strategic synergy with AboutPet and SBS’ startups in August.

Although no details have been finalized yet, startups that GS Retail has invested in are highly likely to be part of the collaboration. GS Retail has made direct and indirect investments in Pet Friends, Varram, Dogmate, Petpick, 21gram, and Fitpet alongside AboutPet.

In a bid to beef up its pet business, GS Retail needs to improve AboutPet’s financial performance. AboutPet has recorded a loss since it was acquired by GS Retail in 2018. Its net loss increased from 1 billion won in 2018 to 3.1 billion won in 2020, amounting to 9.1 billion won in the first nine months this year. GS Retail plans step up efforts to help AboutPet to turn profitable in three years. (Reporting by Kyu-seok Park)