[Exclusive] Hyundai Motor Spin-off MBiome Partners with 'Grab'

Korean Startup, Heading to the 'Land of Opportunity' Southeast Asia

[Asia Economy Reporter Buaeri] Embiome, a biotechnology startup spun off from Hyundai Motor Company, has successfully partnered with Grab, the largest ride-sharing service company in Southeast Asia. Embiome expects this collaboration, which involves equipping Grab vehicles with its products, to significantly expand its opportunities in Southeast Asia. Previously, domestic startups such as Yanolja and Baedal Minjok have also achieved success in Southeast Asia, making the region a land of opportunity for the Korean startup ecosystem.

◆ From Hyundai Motor's in-house venture to Southeast Asia expansion = According to industry sources on the 14th, Embiome recently signed a partnership agreement with Grab to supply disinfectants and vehicle air conditioner eco-coating (deodorizing) products for Grab vehicles. Embiome was founded by CEO Yoon Ki-young, a former Hyundai Motor researcher, through an in-house venture program in 2014 and spun off from Hyundai Motor last year.

Embiome possesses various indoor air care technologies that eliminate viruses and bacteria residing inside vehicles. Leveraging its partnership with Grab, Embiome plans to expand its business across Southeast Asia, including Singapore and Indonesia. CEO Yoon said, "Embiome will sell products to Grab drivers, and the products will be exposed through the Grab application (app), which is expected to have advertising effects as well."

Grab is a ride-sharing service company known as the "Uber of Southeast Asia," operating in eight Southeast Asian countries including Singapore, Indonesia, Vietnam, and Thailand. Grab has 2.8 million drivers, and its app has been downloaded 166 million times. CEO Yoon expressed, "If sales increase through the partnership with Grab, it will also help with future investment attraction."

Embiome plans to establish its headquarters in Singapore for its Southeast Asian business to boost sales through localization strategies. CEO Yoon stated, "The recent COVID-19 pandemic has greatly increased trust in Korean biotechnology," adding, "Considering the climate characteristics of Southeast Asia, there is sufficient demand for air conditioner coating technology."

[Image source=Yonhap News]

◆ Southeast Asia is a land of opportunity for domestic startups = Domestic startups, including Embiome, are showing interest in entering the Southeast Asian market. Unlike the saturated domestic market, Southeast Asia, with its massive consumer base of 650 million people, is seen as a new land of opportunity. According to the 'Startup Trend Report 2019' by Startup Alliance, a survey of 149 domestic startup founders revealed that 36% are already conducting overseas business, and 82% of those not yet overseas view expansion positively. Among overseas markets, Southeast Asia was the most favored, ranking first as the desired overseas expansion destination.

Expansion into Southeast Asia also leads to increased sales. Yanolja, a leisure platform that became a unicorn (startup valued at over $1 billion) last year, recorded global sales of 30 billion KRW in 2019, a fourfold increase from 6.9 billion KRW in 2018. Yanolja's strong performance was driven by expanding its franchise and construction business sectors in Southeast Asia last year. Baedal Minjok, the largest domestic delivery app, also entered the Vietnamese market last year, conducting various marketing activities to target the local market.