Kong Studios, the mobile game startup behind the global hit Guardian Tales, has closed a Series C investment round totaling KRW 50 billion. This significant capital injection stands out in the venture capital landscape, as major VC firms typically show reluctance towards the gaming sector.
Founded in Silicon Valley in 2013, Kong Studios achieved unicorn status in 2021, reaching a corporate valuation of over KRW 1 trillion following the immense success of “Guardian Tales,” launched in 2020. This latest investment specifically targets Kong Studios Korea, the company’s Korean development headquarters, through the issuance of new shares. This strategic move aims to accelerate the development of upcoming game titles.
Atinum Investment led the round with a substantial KRW 10 billion investment. Co-investors included SV Investment and Smilegate Investment, each contributing between KRW 5 billion and KRW 10 billion. This single-company investment is particularly notable when compared to the total gaming industry investments last year, which collectively amounted to just KRW 99.9 billion.
The newly secured funds will primarily fuel Kong Studios’ ambitious plans for developing new titles. Kong Studios Korea reported strong financials last year, with revenues reaching KRW 48.4 billion and operating profit at KRW 2.7 billion, marking increases of 27% and 52% respectively from the previous year. This investment was conducted at a pre-money valuation of approximately KRW 350 billion and reportedly includes provisions for future share swaps with Kong Studios.
