E-Commerce Startup Kurly Eyes Domestic IPO After Raising $200M

Market Kurly Inc., a South Korean logistics and food delivery service provider announced that it would list its shares in the Korean stock market. Kurly had been previously eyeing an overseas initial public offering (IPO) this year, aiming to follow Coupang’s US share listing.

Moreover, Kurly finished reviewing local and overseas IPO options, including details in its business model and respective stock market conditions. As a result, Kurly decided to have its IPO in the domestic market instead of sticking to its plan to debut its shares in the US.

The e-commerce startup also recently acquired a 225.4 billion won ($196 million) investment in a Series F funding. Furthermore, Kurly’s financing round demonstrates that investors incline toward supporting companies with diverse market potentials.

The company’s previous investors, including Aspex Management, DST Global, Hillhouse Capital, and Sequoia Capital China, currently lead the funding round. Kurly’s Series F also welcomed new backers, including CJ Logistics Corp. and Millennium Management.

What’s more, Kurly and CJ Logistics strategically formed a partnership in April. In particular, the two e-commerce companies would enhance and expand Kurly’s overnight delivery operations to more areas outside of Seoul.

Transforming Customers’ Daily Grocery Shopping

“We are delighted to have new capital, which would allow us to further invest in logistics infrastructure, innovate the mobile grocery market, and improve lives of customers, producers, and workers,” stated Kim Seul-Ah, Market Kurly’s Founder and CEO.

The Kurly CEO also said that the $200-million funding exemplifies Kurly’s efforts to transform customers’ daily grocery shopping. Notably, Kurly provided more convenient online shopping experiences by offering affordable first-class product selections and delivery services through advanced technologies.

According to Kurly, the newly accumulated funds would widen talent recruitment and increase its next-day delivery coverage. The earnings would also improve its technology stack, considerably improving existing premium grocery services, future projects, and related operations.

Maintaining Steady Growth to Offer First-Class Experiences

Thanks to the latest financing round, the next-day grocery delivery platform’s corporate value reached 2.5 trillion won ($2.2 billion). Moreover, Kurly’s valuation marks a significant increase from last year’s record.

After closing a Series E funding in April 2020 and obtaining $150 million, Kurly’s valuation amounted to $780 million. Similarly, Kurly attracted $88 million from domestic and international investors in 2019, utilizing the earnings to improve its supply chains.

During the pandemic, global e-commerce startups have drawn major investments and grown rapidly to address customers’ fast grocery delivery demands. Accordingly, Kurly aims to become a leading e-commerce innovator by reinforcing its consumer-centric values and actively providing advanced user experience and high-quality products.