Naver Cream and Japan's Soda Merge Management... Leap to Asia's Largest C2C Platform

Naver's consumer-to-consumer (C2C) platform subsidiary Cream is merging with Soda, the operator of Sneaker Dunk, Japan's largest limited-edition trading platform. The goal is to combine the largest limited-edition trading platform operators in Korea and Japan to become Asia's largest C2C platform.

Cream announced on the 4th that it will invest 97.6 billion KRW in Japan's Soda. Through this, it will secure a 43.6% stake. With this investment, Soda is expected to be incorporated as a consolidated subsidiary of Cream.

Soda is a Japanese startup that launched the Sneaker Dunk service in 2018 and received investment from SoftBank Vision Fund 2. In 2021, it acquired Monokabu, the second-largest player in the market, establishing itself as Japan's number one limited-edition trading platform.

Cream was launched by Snow, a subsidiary of Naver, in 2020 and spun off as a separate corporation in 2021. Since its inception, it has recorded an annual growth rate exceeding 230% based on transaction volume. It covers the MZ generation (Millennials + Generation Z) and Alpha generation in the domestic limited-edition trading market, with over 150 brands participating.

This investment marks the beginning of a business combination to create synergies between the two platforms. Brands from Korea and Japan listed on Cream and Soda will be able to expand their customer base. Cream plans to provide advanced services by combining the inspection know-how accumulated by each platform. Additionally, the platforms can leverage their overseas bases in Thailand, Indonesia, Malaysia, Singapore, and other countries to expand their business.

The business integration of Cream and Soda will be completed by the first half of next year. Even after being incorporated as a consolidated subsidiary, Soda plans to pursue a separate listing on the Japanese stock market. While maintaining the existing management, Soda CEO Yuta Uchiyama will join Cream's board of directors to support the global expansion of the integrated platform.

Meanwhile, Cream has also made an additional investment in Sasom Company, which operates the limited-edition trading platform Sasom in Thailand. Thailand is an emerging market representing Southeast Asia. The market size is rapidly growing, centered on the 10s and 20s age groups, and high growth is expected in the future.