[THE INVESTOR] Korean IT giant Naver’s affiliate Snow, which operates a camera app, on June 19 announced that it has acquired the entire stake in shopping platform startup Heart it for 2.08 billion won (US$1.87 million).
“We acquired Heart it to strategically cooperate, so we will not intervene in its daily operations. Heart it CEO Seo Su-Ah will retain his position in the firm,” a Snow spokesperson told The Investor.
Heart it, established in 2015, provides information about influencer’s fashion item through Instagram. On the platform, users can find out what products influencers use, and it also links them to sellers’ websites to assist the purchase. Currently, Heart it works with fashion giants including LF, Uniqlo and Kolon.
According to industry sources, Snow saw some future value in Heart it, despite is losses. Although it has a unique business model, the startup’s net loss reached 47 million won in 2015, while posting 9 million won in sales. Its sales expanded to 5.4 billion won last year but the startup still failed to see any profit, sources said.
Snow, which currently has more than 270 million users, is looking to earn profits through expanding its business in beauty and fashion related fields. Most recently, in the fourth quarter last year, the firm established a subsidiary cosmetics retailing firm Amuse.
By Song Seung-hyun (email@example.com