[StartupRecipe] Funding in South Korean Supply Chain and Logistics Tech Startups Dries Up

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#Weekly Funding Overview

[Nov.6 ~ Nov.10]

The total funds raised by Korean startups of this week is KRW 150.1 Billion.

Company	Industry	Amount	Round	Investors
Allganize	LMM Solutio	27 billion	Series B	Intervest, Murex Partners, SK Telecom, KB Investment, LG Technology Venture
Dobrain	Digital healthcare	21 billion	Series B	Intervest, KB Investment
Betterworks	Remote worker Career	100 million	Seed	Startup Island Jeju Private Investment Association 2
Sequor Robotics	Robot software	-	Seed	Future Play
Caremedi	Healthcare	26 billion	Series B	iSense, Atinum Investment, Ajou IB Investment, Korea Investment Partners, Company K Partners
Zien	IoT security	-	Grant	TIPS
Audai	Gen AI	-	Grant	TIPS
Forparents	Senior platform	-	Seed	Impact Square
Mezoo	Healthcare	18 billion	Series B	IBK, KODIT, Mirae Asset Securities, Timepolio Asset Management, Woori Venture Partners, E&Venture Partners,
Verybusybe	Quick Commerce	-	Grant	TIPS
Neurophet	Healthcare	20 billion	Series C	KB Securities, Prophet Asset Management, Solidus Investment,Quad Asset Management, Kolon Investment, Solon Investment, Mirae Asset Securities, IBK, DB Financial Investment, Seoil E&M
Noone behind	Edutech	-	Grant	TIPS
Kitronyx	Pressure scan	-	Grant	TIPS
Phoneb	Mobile plan service	-	Grant	TIPS
Gongdo	Edutech	-	Grant	TIPS
Gooshop	B2B Liquor platform	-	Pre-Series A	Series Ventuers
Class101	Edutech	16 billion	Series B Bridge	Goodwater Capital, Maven Groth Partners, Korea Development Bank, SoftBank Ventures
Natronics	Secondary battery	-	Grant	TIPS
CCFNB	Foodtech	-	Seed	Cnttech
REVISIONARY	Fashion	-	Grant	TIPS
Cellqua	Foodtech	-	Grant	TIPS
CLOVERGAMES	Game	15 billion	Series B	LB inestment, Kakao Games, DevSisters Ventures, Howasset, KJ & Investment Partners
Kristin Company	Shoe tech	7 billion	Series A	Korea Development Bank, TKG Ventures, BNK Venture Investment, Ajou IB, Gyeongnam Venture Investment
Motiv	Digital weight machine	-	Grant	TIPS
Spinai	Healthcare	-	Grant	TIPS
Zerocis	Energy	-	Grant	TIPS
Greebase	ESG	-	Grant	TIPS
Shinzigames	Games	-	Grant	TIPS

#Major Funding

• The LLM all-in-one solution, Allganize, attracts a 27 billion won investment. Currently providing AI solutions to over 200 institutions/companies, Allganize expands its Alli (AI cognitive search solution) with recently developed AI technology, integrating it into the Alli LLM all-in-one platform. They plan to go public in Japan in 2025.
• Healthcare developer Caremedi secures a 26 billion won investment. They have developed “Carelevo,” a patch-type insulin pump that incorporates 1.5 times more capacity (300 units/3ml) than existing products while reducing weight and thickness by two-thirds. The investment will be used for research and development, as well as securing production technology.
• Digital healthcare company Dobrain raises 21 billion won in investment. Operating an app-based pediatric developmental healthcare service, they offer customized cognitive training programs for children. They are also conducting research on developing digital therapies for autism patients.
• NeuroFit, a brain disease imaging AI solution, attracts a 20 billion won investment. Established in 2016 with a cumulative fundraising of 50 billion won, NeuroFit plans to launch a total solution related to Alzheimer’s dementia based on AI-powered brain imaging analysis technology next year.
• Digital healthcare company Mezoo secures 18 billion won in investment, including a bailout. Recognized with a company value of 120 billion won through this investment, Mezoo specializes in developing a real-time remote patient monitoring platform.
• Class 101, a subscription service, raises 16 billion won in investment. Launching a global integrated subscription platform, they operate over 5,300 classes in categories such as hobbies, careers, finance, and kids. The investment will be used to enhance their subscription services.

#Trend Analysis

Funding in South Korean Supply Chain and Logistics Tech Startups Dries Up

Supply chain and logistics tech have faced a chilling investment climate this year. According to data from STARTUPRECIPE, the funds raised by startups in this sector amounted to 55.6 billion KRW until October. This figure is significantly lower when compared to 2021’s 435.5 billion KRW and 2022’s 400.5 billion KRW. The largest investment this year, totaling 40 billion KRW, was secured by the food B2B distribution solution Smart Food Network. Considering that last year’s highest investment amount was 160 billion KRW, it reflects a considerable decline this year.

The number of investments also showed a 43% decrease compared to the same period last year, and there hasn’t been a single investment exceeding 10 billion KRW since May. Despite the rapid growth of supply chain and logistics tech startups in recent years, fueled by the increased demand in e-commerce due to the impact of COVID-19, the market downturn and a slowdown in e-commerce growth have led venture capitalists to reduce their investments in this sector. Specific sub-areas include last-mile delivery, logistics automation, and freight transportation mediation.

Especially notable is the disappearance of investment news in the last-mile delivery startup sector, which was once fiercely competing to become unicorns. Some companies have faced management difficulties, including employee layoffs and, in some cases, selling their management rights. Strategies, such as expanding logistics centers, including micro-fulfillment, to seize the market, are being revised due to the frozen investment market. Even major distribution companies that were pursuing business partnerships with last-mile startups are showing less interest.

Despite the challenging market conditions, technology startups leading the digital transformation of the supply chain and logistics market continue to emerge steadily. Logistics automation solutions focusing on efficiency, using AI and robots for delivery, packaging, sorting, and inventory management, are prominent. While large-scale funding for companies in the early stages is still challenging, companies with the technological capability to adapt to changing market trends and market recovery may find investment opportunities.

The investment cold spell in the supply chain and logistics tech sector is expected to persist for the foreseeable future. However, with the anticipation of accelerated digital transformation in the logistics market in the long term, startups with technological capabilities still have growth potential.