Kakao Pursues Acquisition of Women's Shopping App 'Zigzag'

[Asia Economy Reporter Kang Nahum] Kakao is reportedly pursuing the acquisition of the women's shopping app 'ZigZag,' operated by Croquis.com.

According to industry sources on the 8th, Kakao is establishing a new subsidiary and plans to acquire ZigZag by merging this new company with ZigZag. The new company's name is said to be 'KakaoZ,' derived from ZigZag. The specific acquisition amount has not been disclosed.

ZigZag is a service launched in June 2015 that aggregates women's online shopping malls dealing with Dongdaemun clothing. It is characterized by providing a mobile-optimized user experience, such as shopping mall favorites and personalized product recommendations.

The transaction volume has steadily increased every year, from 200 billion KRW in 2016 to 350 billion KRW in 2017, 500 billion KRW in 2018, and 600 billion KRW in 2019, showing consistent growth.

A Kakao official, however, refrained from giving specific answers regarding this acquisition, stating, "Nothing has been finalized yet," and "We are considering various measures to secure competitiveness in the e-commerce market."