The Top South Korean Startups to Invest in 2024 - A Comprehensive Overview
In recent years, the South Korean startup ecosystem has experienced significant growth, attracting major tech firms and venture capital from the West. With South Korea being one of Asia's strongest economies, startups in the country have benefited from access to funding from big tech companies like Google, Meta, Qualcomm, and Samsung, as well as support from the Korean government through innovation hubs and accelerators.
Currently ranking ninth globally in terms of the number of unicorns, South Korea's capital city, Seoul, has emerged as a top destination for tech startups. However, like many other countries, South Korean startups have faced challenges due to economic turmoil, resulting in decreased funding, layoffs, and lower valuations.
In 2023, venture capital investments in South Korea dropped to $4 billion from $5.1 billion the previous year. Despite these challenges, 2024 is expected to be a pivotal year for many startups in the country, with several big names planning to go public either domestically or in the U.S.
Let's take a closer look at some of the top startups to watch out for in South Korea:
1. Yanolja
- Founder: Su-jin Lee
- Total funding raised: $1.95 billion
- Key investors: SoftBank Vision Fund, GIC, Booking, SkyLake Investment
- Revenue in 2023: $578 million
Yanolja, a travel booking platform founded in 2005, has transformed the concept of love hotels in Korea, catering to a younger demographic. With operations in over 200 countries, Yanolja is preparing for an IPO in the U.S., aiming to raise $400 million.
2. Viva Republica (Toss)
- Founder: Seung-gun Lee
- Total funding raised: $1.34 billion
- Key investors: Alkeon Capital, Altos Ventures, PayPal, Qualcomm Ventures
- Revenue in 2023: $994.1 million
Viva Republica, the company behind the finance app Toss, is on track for profitability and is considering a public listing in South Korea next year.
3. Kurly
- Founder: Sophie Kim
- Total funding raised: $761 million
- Key investors: Anchor Equity Partners, Sequoia Capital China, SK Networks
- Revenue in 2023: $1.5 billion
Kurly, a grocery delivery service, is aiming to resume its IPO plans after achieving profitability in 2023.
4. Dunamu
- Founder: Hyoung Kim, Chi-hyeong Song
- Total funding raised: $522 million
- Key investors: Anchor Equity Partners, Hana Financial Group, Stonebridge Capital
- Revenue in 2023: $751 million
Dunamu, the operator of Upbit, South Korea's largest cryptocurrency exchange, is looking to go public on the Nasdaq.
5. Musinsa
- Founder: Man-ho Cho
- Total funding raised: $330 million
- Key investors: IMM Investment, KKR, Sequoia Capital
- Revenue in 2023: $662.5 million
Musinsa, a fashion marketplace, is in talks for an IPO in South Korea in 2025 after raising $190 million in a Series C round.
6. Danggeun Market
- Co-Founders: Gary Kim, Paul Kim
- Total funding raised: $205 million
- Key investors: Altos Ventures, Kakao Ventures, DST Global
- Revenue in 2023: $96.3 million
Danggeun Market, the hyperlocal marketplace app Karrot, reported its first profit in 2023 and is considering an IPO.
7. Bucketplace (O!House)
- Founder: Seungjae Lee
- Total funding raised: $261 million
- Key investors: BRV Capital Management, KB Investment
- Revenue in 2023: $181 million
Bucketplace, a home decorating app, turned down an investment from Alibaba and is similar to the upcoming IPO of Houzz.
8. Moloco
- Founder: Ikkjin Ahn, David Sehyuk Park
- Total funding raised: $200 million
- Key investors: Tiger Global Management, EDBI, Fidelity Management
- Revenue in 2023: $300 million
Moloco, an adtech startup, is valued at over $2 billion and is considering a public listing on the Nasdaq.
9. ZigBang
- Founder: SungWoo Ahn
- Total funding raised: $248 million
- Key investors: Altos Ventures, Goldman Sachs, Korea Development Bank
- Revenue in 2023: $97 million
ZigBang, a proptech startup, raised $77 million in Series E funding and is exploring the smart home industry.
10. Korea Credit Data
- Founder: Kelvin Dong-ho Kim, Seong-ho Lee
- Total funding raised: $196 million
- Key investors: D-Camp, Fiserv, Kakao, LG Uplus
- Revenue in 2023: $103 million
Korea Credit Data, a fintech startup, raised $77 million and is planning to go public in 2025.
In conclusion, investing in South Korean startups offers a diverse range of opportunities across various sectors such as travel, finance, grocery, cryptocurrency, fashion, real estate, adtech, and fintech. With many startups gearing up for IPOs, potential investors should keep an eye on these promising companies and consider them as part of their investment portfolio for potential growth and returns.