South Korean luxury e-commerce platform Balaan has secured 15 billion won in a new funding round, marking a major milestone as it continues to navigate challenges since its founding in 2015.
The investment, led by Silicon Two, follows a conditional two-phase structure. In the initial phase, Silicon Two has acquired 7.5 billion won worth of convertible bonds. The remaining 7.5 billion won will be injected between November and May next year, contingent on Balaan meeting specific performance benchmarks.
To unlock the second phase of funding, Balaan must achieve over 50% growth in purchase-sale revenue and maintain positive operating profit for two consecutive months during the designated period. Additionally, Silicon Two has secured a call option that grants it the right to acquire a controlling stake—50% plus one share—between the release of Balaan’s 2027 fiscal year audit report and the end of 2028.
With this investment, Balaan aims to accelerate its expansion into the global luxury cosmetics market by leveraging Silicon Two’s extensive distribution network.