Total Cumulative Investment of 227 Billion KRW... Rising Unicorn Attracting Attention from Overseas Capital Markets
[Asia Economy Reporter Kim Cheol-hyun] Karrot Market, the largest local community platform in Korea (co-CEOs Kim Yong-hyun and Kim Jae-hyun), announced on the 18th that it has successfully completed a Series D investment round worth 178.9 billion KRW.
This investment round included new investors such as DST Global, Aspex Management, and Leverant Partners, as well as existing investors including Goodwater Capital, SoftBank Ventures Asia, Altos Ventures, Kakao Ventures, Strong Ventures, and Capstone Partners. With this, Karrot Market has recorded a total cumulative investment of 227 billion KRW. Notably, during the investment process, the company was valued at 3 trillion KRW, solidifying its position as a unicorn company (a private company valued at over 1 trillion KRW).
Karrot Market has experienced more than triple growth annually, reaching 15 million monthly active users (MAU) and over 10 million weekly active users (WAU). Starting from key metropolitan areas, the service expanded nationwide, with monthly active users increasing from 500,000 in January 2018 to over 1.8 million the following year, 4.8 million in 2020, and surpassing 14.2 million this year, achieving an average annual growth rate of more than threefold over the past three years.
The rapid achievement of 10 million users in a short period is also noteworthy. Starting from 500,000 MAU in January 2018, it took only two years and eight months to surpass 10 million users, a speed considered exceptional both domestically and internationally. The total number of registered users has also exceeded 21 million. Based on the 20.92 million households in South Korea reported by Statistics Korea last year, this means that virtually every household in the country has registered.
Monthly app usage time, a key engagement metric, is also remarkable. According to global data research firm App Annie, as of July this year, the average monthly usage time per user on Karrot Market was 2 hours and 2 minutes, more than twice as long as major overseas services. The average monthly visit frequency per user reached 64 times, placing it among the top tier in global competitive groups.
Karrot Market plans to focus the new investment funds on continuous technological advancement, hiring for business expansion, expanding overseas market entry, and strengthening domestic and international marketing, aiming to realize its vision as a 'local super app.' As part of this, it will actively strengthen local commerce in the second half of this year. The company will concentrate on revitalizing local businesses by closely connecting regional markets and residents through online and offline integration, especially in agricultural, marine products, and fresh food sectors. Additionally, it plans to diversify service areas in fields such as cleaning, pet care, education, and convenience stores by collaborating with specialized companies, while further enhancing existing local services like real estate, used cars, and job listings. Continuous investment in artificial intelligence (AI), machine learning, and technology will also be pursued.
Karrot Market is accelerating its overseas market strategy. The global version, 'Karrot,' currently operates in 72 regions across four countries: the UK, the US, Canada, and Japan, with plans to continuously expand its service areas and scope. The company is also speeding up recruitment across all job categories. It plans to significantly increase hiring in over 40 positions, including developers in various fields, design, marketing, planning, and overseas business. The workforce, currently around 200 employees, is expected to grow to approximately 300 by the end of this year.
John Lindfors, partner at DST Global and lead investor, said, "We have been deeply impressed by Karrot Market's influence in creating a new market and its rapid growth over the past several years. The excellent service model and user behavior based on local communities demonstrate Karrot Market's potential to grow into a local super app."
Kim Yong-hyun, co-CEO of Karrot Market, stated, "Local business is a rapidly growing sector overseas as well, and we have confirmed that Karrot Market's philosophy and service model, focused on the keyword 'neighborhood,' are competitive enough to succeed in the global capital market. Going forward, we will continue to realize greater value based on limitless business scalability and accelerate innovation as a local super app."
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