Kurly, operator of grocery delivery platform Market Kurly, on May 24 announced that it has secured an additional 35 billion won investment from China-based Hillhouse Capital in its series D round.
In April, 100 billion won funding was provided by Kurly’s existing investors including Sequoia Capital. According to the grocery platform startup, the total amount that it raised in series D round adds up to 135 billion won.
Hillhouse Capital Group is a China-based investment management firm, which is known for funding startups Tencent and Meituan. The company has also funded Korean delivery app operator Woowa Brothers.
Established in 2015, Market Kurly offers a wide range of groceries and merchandise for delivery by 7 a.m., as long as the orders are placed before 11 p.m. the previous night.
The Korean startup noted that it will use most of its funding to further advance and stabilize its delivery system and supply chain.
“We will make our utmost efforts to maintain outstanding service quality and provide differentiated customer experiences,” Kurly CEO Sophie Kim said in a statement.
“Kurly already has some contribution margin, which is the marginal profit per unit sale, as its saw sales surge and its operating efficiency is improving,” Hillhouse Capital Partner David Rhee said. “We are looking forward to seeing Market Kurly opening up a new retail paradigm.”
The startup’s sales reached more than 157.1 billion won last year, increasing drastically from 46.5 billion in 2017.
However, some industry sources have expressed concerns as competitors with significant capital are launching similar services here after witnessing its success. E-commerce company Coupang recently started a service known as Rocket Fresh, and the Korean retail giant E-mart has rolled out SSG Good Morning.
Currently, Kurly founder and CEO Kim is the biggest shareholder with a 27.9 percent stake. Next, are the Korean hedge fund Alphen Route Asset Management, which owns 21.5 percent, and SK Networks with 9.41 percent.
By Song Seung-hyun (email@example.com)