Korea's Tmon closes $276m pre-IPO round

The deal, structured as an exchangeable bond issuance, included KRW50 billion from existing investors KKR and Anchor Equity Partners. The company said in a statement that it will soon initiate an IPO.

The announcement comes days after rival e-commerce player Coupang filed to list in the US. The company, which has secured approximately $3.5 billion in private funding over the past decade, reportedly expects to achieve a market capitalization of more than $50 billion. Its most recent round was at a post-money valuation of $9 billion.

KKR and Anchor acquired a 46% stake in Tmon in 2015 at a valuation of $782 million, with majority owner Ticket Monster retaining a 42% interest. There have been several subsequent funding rounds. NHN Entertainment contributed $42 million in 2016 and then Simone Investment Managers – and other investors – committed $115 million the following year. The latter round was at a valuation of $1.3 billion.

Founded in 2010, Tmon operates a consumer goods marketplace, offers flight, hotel and package holiday bookings, and sells discount coupons for consumer experiences ranging from restaurants to beauty treatments. Recent innovations include limited-time flash sales and premium membership options, gifting services, and live commerce sessions.

Total spending on retail, grocery, consumer food services, and travel in Korea was $470 billion in 2019 and is expected to hit $534 billion in 2024. Over the same period, e-commerce spending is projected to rise from $128 billion to $206 billion. E-commerce spending per capita will reach $4,300, up from $2,600.

The dominant pure e-commerce platforms in Korea are said to be Coupang, Tmon, and Wemakeprice. These companies have posted substantial losses for most of their history, but Coupang’s losses have narrowed in the last two years, while Tmon reportedly broke-even for the first time in March 2020. Several traditional retailers – notably Shinsegae – are also pushing into e-commerce.

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• Topics
• North Asia
• Expansion
• Technology
• Consumer
• South Korea
• TMT
• Anchor Equity Partners
• KKR