April 20, 2024

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[THE INVESTOR] The Farmers, operator of popular grocery delivery service Market Kurly, is seeking to attract additional funding worth 20 billion won (US$18.46 million) ahead of its planned stock debut next year, according to industry sources on Feb. 14.

This is the second time that the firm has sought funding since it attracted 17 billion won investment for in 2016. 

The new funding is expected to be used for continuing the recent growth momentum by injecting resources into expanding logistics facilities and delivery service networks.

A company spokesperson confirmed the funding plans but declined to further elaborate.

The Farmers, established in 2014, has seen stunning growth over the past few years due to its unique delivery platform Market Kurly is enjoying huge popularity through word-of-mouth on social media. The grocery shopping specialist delivers all the items by 7 a.m. as long as the orders are made before 11 p.m. the previous day.

The company has recently picked Samsung Securities as its IPO manager and plans to go public next year. Several venture capital firms, including SEMA Translink Investment, UTC Investment and LB Investment, are cited to be interested in acquiring a stake.

Its new 20 billion won funding is also getting strong demand from investors both in Korea and abroad. Sources say the firm has already attracted more than double the target amount.

The firm’s sales are estimated to have reached more than 53 billion won in 2017, up almost threefold from 17.3 billion won in 2016. Mobile platform operator Yellow Mobile CEO Lee Sang-hyuk is the largest shareholder with a 54.8 percent stake, followed by Market Kurly CEO Sophie Kim.

By Song Seung-hyun (ssh@heraldcorp.com)