South Korea-based online grocery marketplace grows in revenue and size on the back of digitalization
South Korea-based Market Kurly (Kurly Corp), an online grocer specializing in next-morning delivery, benefited greatly from rapid digitalization caused by COVID-19. Founded in 2015 with the unique proposition of delivering fresh groceries by dawn if orders are placed before 11pm, a large part of its target market were working mothers, who typically shop after their children have gone to bed.
Its customer base quickly expanded when demand for online groceries skyrocketed during the pandemic, and investors capitalized on the growth. Market Kurly’s funding rounds got progressively larger since its $160mn Series E round in March 2020. It received $198mn in June 2021 and $199mn in July 2021, with investors including DST Global and Sequoia Capital. Late last year, Hong Kong-based private equity firm Anchor Equity Partners invested $210mn in the company’s pre-IPO round, which pushed its post-money valuation to $3.3bn.
Based on Preqin’s Company Intelligence data, Market Kurly’s revenue grew at a rate of 146% CAGR over the five years to 2021, reaching KRW 1,561bn (around $1.3bn) that year. Its employee count grew tenfold in six years, from just 32 in 2015 to 320 in 2021. However, with operating expenses doubling in 2021, mainly due to higher variable costs such as delivery, packaging, and cold chain logistics, EBITDA has fallen further from KRW86-bn to KRW165-bn. Market Kurly is now focused on improving profitability and has expanded to sell household appliances and goods. The company seeks to raise over $800mn and file for an IPO but the ongoing stock market downturn may delay plans.
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