According to a report by Platum, the factors that made Woowa Bros so attractive to investors include its total sales of around US$9.4 million in the past three years, as well as its pole position among food delivery apps in Korea, capturing 60 per cent of the market, with over 10 million downloads in total.
Kim Bong Jin, CEO, Woowa Bros, shared that even with the investment, the food delivery industry in Korea still poses considerable challenges for Woowa to overcome. “As compared with other established industries, the Korean food delivery industry still lacks an effective and mature supply chain,” he noted, “Hence, startups need to, in addition to taking account of customer service and user experience, also create value for industry partners such as food vendors and proprietors.”
In this vein, CyberAgent Ventures stated that it will work together with Woowa Bros, leveraging on its existing resources, which include existing business operations and know-how to enhance value for Baedalui Minjok.
[Update] Said Hideyuki Ebihara, Head of CyberAgent Venture’s Seoul office, “Our strength is in our network around Asia, specifically Japan, China, and Southeast Asia. Hence, after our investment, we would be providing information about each market to Woowa and help it expand its business regionally.”
[Update] This investment by CyberAgent Ventures chimes in nicely with its investment strategy in Korea, which, Ebihara stated, has a strong focus on the smartphone business. “We aim to make an investment in the top players in each of the smartphone business categories — be it at the Series A, B, or C funding stages,” he added, “In addition, we also intend to invest in pre Series A startups which have possibility to become one of Korea’s top companies in their vertical, helping them expand their business overseas.”