Despite Deficits, Expansion of Hiring: The 'Carrot' That Danggeun Trusts

Hiring in Over 60 Job Categories
Advertising Revenue Growing Twice as Fast

Monthly Active Users (MAU) of 18 million, operating loss of 56.5 billion KRW in 2022. These two figures vividly illustrate the contrasting situation that the secondhand trading platform Danggeun Market is currently facing. Although it is a secondhand trading service used by 35% of the population every month, Danggeun Market has yet to turn a profit after several years of losses. This is also why some express concerns about Danggeun Market. However, Danggeun Market maintains that it is growing according to its business roadmap and is expanding its recruitment.

Danggeun Market is actively recruiting talent, currently hiring across about 60 different job categories. The company has approximately 400 employees and explains that as it diversifies its business, advances its technology, and explores new revenue models, it continuously needs new personnel. In fact, Danggeun Market recently launched a 'Gatherings' service that connects various online and offline activities happening in neighborhoods. It also introduced a voting feature in Neighborhood Life and added a reservation function within Business Profiles, expanding its services.

Despite ongoing losses, the reason Danggeun Market can add services and increase hiring is attributed to the growth in advertising revenue. Advertising, which accounts for 99% of Danggeun Market’s total revenue, has been well received and maintains a steady upward trend. Looking at last year’s performance, advertising revenue reached 49.5 billion KRW, doubling from 25.4 billion KRW the previous year. This trend has continued into this year. Danggeun Market explained that first-quarter advertising revenue more than doubled compared to the same period last year. During the same period, the number of advertisers using Danggeun Market’s advertising increased by 73%. A Danggeun Market representative said, "This year as well, we are growing advertising as our main business model," adding, "We are enhancing advertising solutions and technology for various business partners as an effective local marketing channel."

Based on this, Danggeun Market’s revenue growth outpaced the increase in operating expenses. Last year, revenue was 49.9 billion KRW, a 94.5% increase from the previous year, while operating expenses rose by 74.8% to 106.4 billion KRW. Although it is difficult to predict the exact timing of reaching the break-even point (BEP), Danggeun Market analyzed that given this growth trend, it will not take long.

A Danggeun Market representative stated, "Danggeun Market is a startup focused on local business, currently concentrating on expanding various experiences that users can connect with in their regions according to our growth roadmap," adding, "We will continue investing to expand the domestic hyperlocal market and create new value and innovation."