[StartupRecipe] Funding Rebounds: Consumer Tech Startup Trends in Korea

Access to the latest Korean startup news and startup database for free

#Weekly Funding Overview

#MAJOR FUNDING

• Delivery platform Vroong has raised KRW 30 billion in investment. Acquired by hy in 2023, the investment will be used to expand infrastructure and affiliate networks, as well as expand R&D investment to strengthen technological capabilities.
• Activon, a cosmetic materials company, has secured a KRW 10 billion investment. The company develops cosmetic and industrial functional materials, including safe preservative alternatives and stabilized capsule materials for active ingredients. The investment will be used for material R&D, exploring new markets, and preparing for its planned IPO in 2026.
• Artist Group, an entertainment company, has raised KRW 18 billion in investment. Through collaboration with its investor, MBN, the company aims to establish a system covering content production, distribution, and broadcasting. The investment will accelerate its expansion into the global K-content market.
• Mediquitous, a fashion and beauty brand and platform, has secured a KRW 10 billion investment, with a company valuation of KRW 300 billion. It operates the fashion commerce platform ‘nugu’ in Japan and owns brands such as Mahagrid, The Barnet, and Nice Ghost Club. The funds will be used for business acquisitions and other strategic initiatives.

#TREND ANALYSIS

Funding Rebounds: Consumer Tech Startup Trends in Korea

After facing a challenging year in 2024, the Korean consumer tech investment market is showing signs of recovery in 2024. Once a favorite among investors, consumer tech struggled to maintain its position last year, with B2C platforms seeing significant declines in valuations. However, the first quarter of this year has brought renewed optimism to the sector.
As of the end of Q1 2025, consumer tech companies raised KRW 316 billion in investments—a slight decrease compared to the same period last year. However, there is a notable improvement in the number of companies securing investments exceeding KRW 10 billion, which increased from two last year to six this year. This growth reflects a diversification of investment sectors and a broader range of funding across different stages of development, signaling a positive trend for the industry.

Food Tech and Beauty/Fashion Lead the Way
Food tech and beauty/fashion platforms remain dominant forces within the consumer tech investment sector. The food industry attracted the highest amount of funding, while beauty and fashion platforms recorded the largest number of investments. These trends align with shifting consumer lifestyles and investor confidence in these markets’ growth potential. For instance, Doers, a food delivery app tailored for single-person households, secured KRW 30.6 billion in funding—a testament to the rising demand driven by demographic changes.

Specialty Brands Gain Traction Globally
Specialty brands addressing niche consumer needs are increasingly capturing investor attention. With trends like self-care and personalized solutions gaining momentum—spanning luxury goods, cosmetics, perfumes, hair loss treatments, and sensitive skin care—brands that offer unique concepts are thriving. Premium beauty brand Best Innovation and luxury online platform Balaan have been recognized for their expertise and global growth potential.

Additionally, investments are expanding into lifestyle and K-living sectors, such as At Home and Eastern Edition. These brands reflect Korean sensibilities and are being acknowledged for their ability to resonate with international audiences. Unlike previous years when large platforms dominated investments, segmented brands that cater to specific consumer needs are now driving interest.

Platforms Targeting Specific Audiences See Success
Platforms tailored to specific demographics or interests are also attracting significant investment. Examples include Bind, a men’s fashion commerce platform; KWorkPartners, a service for foreigners; MissionDriven, a platform for middle-aged users; and Forparents, which caters to active seniors. NETY, a calendar platform for college students, was acquired by Timetree—highlighting the growing appeal of niche-focused services.

Pet Services Shine in Early-Stage Investments
Pet-related products and services are emerging as strong contenders in early-stage investments, particularly those focused on pet healthcare. Companies such as Petfarm, Betplace, CareSix, and P.P.M.I. have successfully secured funding in this space.

Series A Investments Show Growth Potential
While early-stage investments continue to dominate the market, Series A funding has seen year-on-year growth—a sign that investors are increasingly supporting companies ready for full-scale expansion. Pre-Series A investments remain relatively high as well, creating opportunities for follow-on funding for startups that demonstrate strong growth potential.

The recovery of Korea’s consumer tech investment market indicates renewed confidence from investors who are diversifying their portfolios across innovative sectors and niche markets. With trends pointing toward global expansion opportunities and targeted solutions for specific audiences, 2024 may prove to be a turning point for the industry’s resurgence.

#MORE NEWS

• Han Pass Raises KRW 10B to Fuel Super App Expansion
• Primer Showcases Nine Startups at 25th Batch Demo Day