April 19, 2024

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[THE INVESTOR] RGP Korea, the Korean arm of Berlin-based Delivery Hero that operates B2C food delivery app YoGiYo here, has acquired a 27.27 percent stake in B2B food delivery startup Barogo to become its second biggest shareholder, according to industry sources on May 28.

Barogo issued redeemable convertible preference shares worth around 20 billion won (US$18.61 million) to be purchased by RGP Korea, sources said. After the funding, Barogo’s total capital has increased to 2.8 billion won from 2.1 billion won. 

Barogo provides food delivery service for major fast-food franchising firms including Burger King, KFC and Popeyes. Lee Tae-kwon, a founder of Barogo which was established in 2014, is currently the company’s biggest shareholder.

With the move, RGP Korea -- which also owns major delivery apps Baedaltong and FoodFly -- has attained significant stakes in both B2B and B2C sectors.

The leading food delivery firm in Korea’s 15 trillion won market is Baedal Minjok, which accounts for 51 percent. RGP Korea’s Yogiyo has 35 percent, while Baedaltong has 14 percent.

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