Burung Completes 30 Billion KRW Investment... Strengthening Competitiveness in the Delivery Agency Market

Issuance of New Shares via Third-Party Allotment to Shinhan Investment Corp
Expansion of Infrastructure Including Riders and Enhancement of Technological Capabilities

Delivery agency platform Vroong announced on the 17th that it has secured an investment of 30 billion KRW from Shinhan Investment Corp.

After resolving to issue new shares through a third-party allotment at the board meeting held on the 17th of last month, Vroong completed the payment of the subscription on the 14th of this month. The recipient is Shinhan Investment Corp or a third party designated by Shinhan Investment Corp.

Through this investment, Vroong plans to enhance financial stability while further strengthening its competitiveness in the delivery agency market. In particular, it will expand infrastructure such as riders, the crowdsourcing platform 'Vroong Friends', and partnership networks to respond to the increasing delivery volume in the market and the demand from corporate clients relying on Vroong.

Additionally, Vroong intends to increase investment in research and development (R&D) to strengthen technological capabilities and focus on improving corporate productivity and service levels.

Kim Hyungseol, CEO of Vroong, said, "As order mediation platforms grow, many delivery agencies are experiencing a decrease in delivery volume and financial difficulties. This investment is significant as it recognizes Vroong's growth potential, which has expanded its market share in the corporate sector and strengthened its position in the delivery market."

Meanwhile, Vroong, acquired by hy in 2023, continues stable growth despite the delivery industry's downturn, with delivery orders increasing by more than 10% compared to the previous year.