[StartupRecipe] Mega-Deals Disappear for Korean Logistics Startups

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Mega-Deals Disappear for Korean Logistics Startups

This year, South Korea’s logistics and delivery startup investment market is showing recovery for the second consecutive year, but it still remains at about half the level of its past peak. According to Startup Recipe data, the investment amount tallied through November stands at KRW 156.9 billion, similar to last year’s total investment of KRW 158.9 billion.

This represents a decline of over 60% compared to the boom period of 2021 (KRW 435.5 billion) and 2022 (KRW 400.5 billion). After nearly doubling from the market bottom of KRW 80.4 billion in 2023 to 2024, this year continues the recovery trend, though it appears to have entered a stable trajectory rather than experiencing explosive growth.

Mega-deals exceeding KRW 100 billion, once dominated by last-mile delivery startups, have been absent for three consecutive years, with mid-sized investments ranging from KRW 10 billion to KRW 40 billion now forming the market’s backbone.

As of November, the largest investment went to delivery platform Vroong, which raised KRW 40 billion. This was followed by logistics platform Colosseum Corporation with KRW 27 billion, AI logistics automation solution provider Daim Research with KRW 22 billion, delivery service V2V with KRW 17.2 billion, and food ingredients commerce company Smart Food Networks with KRW 15 billion.

While the number of investment deals has increased, funds are actually concentrating in specific sectors with proven technology. Investment is particularly flowing into logistics solutions and AI automation robotics. In the logistics platform sector, companies like Colosseum Corporation, Aszwemake, and Near Solution have attracted attention, while in logistics automation, Vem Robotics and Dyme Research have gained prominence.

Emerging sectors include shipping and global logistics. Maritime and logistics supply chain management solutions, port logistics, and AI agents for shipping brokerage are drawing attention, with the growth of cross-border commerce and the digitalization of global supply chains creating new investment opportunities. Securing partnerships with large corporations has also emerged as a key variable for survival. Naver’s NFA (Naver Fulfillment Alliance) is alleviating logistics burdens by partnering with not only traditional logistics companies but also various startups such as Techtaka and Passto. Among Naver’s partners, Techtaka is a prime example showing growth in global fulfillment business based on K-beauty popularity alongside its NFA collaboration.

Conversely, there have been cases of failure despite receiving investments from major corporations. Floatic, a logistics robot startup that received investments from big tech companies like Naver and Kakao, faced closure due to commercialization failure, and TeamFresh, once called the next unicorn after expanding from dawn delivery services to fulfillment business, suspended services and downsized due to financial difficulties. Manna Corporation is also experiencing management difficulties due to an inability to process settlement payments.

With investment inflows projected to remain below KRW 200 billion this year, venture capital investment tendencies demanding clear profit models and performance rather than mega-deals are expected to strengthen going forward. Accordingly, selective investments are anticipated to continue in companies with proven technology in SeriesA throughC stages.

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