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[StartupRecipe] Factors Driving the Growth of the Secondhand Market

#Weekly Funding Overview

[Feb. 20 ~ Feb. 24]

The total funds raised by Korean startups of this week is KRW 43.15 billion.

BM STAGEPettech-Kwangdong Pharmaceutical
Likenotunderware platform-SeedCNTTech
Grow CorporationEducation-M&AClass 101
GenecastBio/Healthcare6 billionAccessbio
TwoslashfourBeuaty-Yoonmin Foundation, AmorePacific Group, We Ventures, TBT Partners, Mark & Company
BabygoKids platform-BridgeSamsung Venture Investment, K-Bridge Investment, Newborn Venture
CroftSmartfarm-SeedFuture Play
ConnectbrickAi Vision-SeedKorea Investment Accelerator
CenacleDigital Healthcare4 billionSeries CNaver Cloud
Mine.isSecondhand Platform4.15 billionSeedGoodwater Capital, CJ Logistics, SM Culture Partners, Angel investors
ThermolabClean package3 billionSeries A2Be High Investment, Hana Securities, KIBO
ReviewmakerInfluencer marketing-M&AEruda mareketing
AM ManagementFinterch-SeedMashup Angels
CasenoteLegal tech-SeedKorea Investment Accelerator
MARO STUDIODigital Content-Kidari studio
LBOXLegal tech2 billionSeries BSamsung Venture Investment
BarofishFoodtech-1billion partners
BunkerkidsHealthcare-Series ASeries Ventures
ZConverter CloudSoftware-Series ASamsung Venture Investment
Fluentt3D Motion Capture-SeedKorea Investment Accelerator
Standard Measurements and Characterization LabSPM-TERS Device3 billion
ANIAIFood robotics4 billionSeedCapstone Partners, Lotte Ventures
GuhadaLuxury Fashion8 billionSeries BKorea Investment Partners, Woori Bank, DT & Investment, BM Ventures
Greenpakage solutionClean package2 billionKorea Venture Investment
FullleafPlant platform-SeedKorea Investment Accelerator
BreedingPettech-Pre-Series ABluepointpartners, The Ventures
BrlabSleeptech7 billionDaol Investment, KB Securities, Insight Equity Partners, Tigris, Nau IB, Ajou IB Investment, Cosine Investment, BDC, Yugyung PSG

Major Funding

  • Guhada, a luxury goods distribution platform, raised KRW 8 billion in funding, increasing its total investment to KRW 13.5 billion. With a distribution hub that links local European boutiques, domestic shopping malls, and luxury fashion commerce, Guhada generated KRW 11.1 billion in total revenue last year. The company signed API integration agreements with over 50 local boutiques and plans to achieve profitability with the investment.
  • Bialab, a sleep tech company, secured KRW 7 billion in funding. Founded by a medical school and biosignal lab that studies sleep, its platform measures sleep data without equipment. In H1 2023, it plans to launch wellness products.
  • Aniai, a robot kitchen startup, raised KRW 4 billion in seed investment. It successfully commercialized Alpha Grill, an AI robot that grills hamburger patties, cooking both sides in less than a minute based on the pre-entered temperature and thickness. The company plans to expand Alpha Grill and enter the US market with this investment.

#Trend Analysis

Factors Driving the Growth of the Secondhand Market

The second-hand marketplace is experiencing rapid growth worldwide, as evidenced by Naver’s recent acquisition of Poshmark, the world’s leading second-hand fashion platform, for a staggering 1.5 trillion won earlier this year. Despite the COVID-19 pandemic, second-hand trading platforms have seen significant growth in 2021, thanks to the advantages of online transactions and consumers’ desire to purchase products at a lower cost. Several platforms, including Daangn Market, Korea’s leading second-hand platform, Cream, and BGZT, have achieved unicorn status or high valuations. Even Joongonara, a second-hand platform, was acquired by Lotte, causing the second-hand market to explode in 2021.

Changing consumer spending patterns have driven the growth of the second-hand market. As the pandemic has made online shopping more popular, consumers are seeking unique, affordable items, and young people are increasingly environmentally conscious and interested in sustainable living, prompting them to seek out second-hand goods. For young people with limited budgets, second-hand trading is also an attractive option. While fashion and luxury goods currently dominate the second-hand trading platform market, other types of platforms are emerging, such as those that trade vehicles and industrial materials.

Despite a waning investment market in 2022, early-stage investments dominated the market, and investors remain interested in second-hand trading platforms, as evidenced by Mineis, the operator of second-hand fashion service Charan, receiving KRW 4.15 billion in seed funding.

The thrift market is projected to continue growing, with a 2022 study by The Boston Consulting Group and resale service Vestiaire finding that Gen Z consumers are the most likely to buy (31%) and sell (44%) second-hand goods. This generation is not only the most active in buying secondhand goods, but they also participate in the circular economy by selling unused products or clothing to make money. This is one of the ways teens are using secondhand trading as a legitimate way to make money, contributing to market growth. The increasing number of environmentally conscious and sustainable consumers is also contributing to the growth of the second-hand market. Another advantage is the ability to expand to global markets such as Canada like Daangn Marketor operate both online and offline stores like Cream and BGZT.

For these reasons, investors are also interested in second-hand trading platforms with sustainable business models, and the high demand for second-hand trading platforms, which generates stable transaction volumes, is also an attractive investment factor, so second-hand trading platforms are expected to continue to grow.

MineisSecond-hand fasion platform4.15 billionSeedGoodwater Capital, CJ Logistics, SM Culture Partners, Angel investors
UpstairsSecond-hand phone platform4.3 billionSeriesAIBK Venture Capital, E& Investment Partners, Partners Investment
Craving CollectorsSecond-hand fasion platform5.5 billionPre-series AKream
TurnbackSecond-hand luxury platformUndisclosedSeedYoonmin Foundation, New Flight
Mr. Camel.Second-hand luxury platform1 billionPre-series AKB Investment, Fast Ventures
PalmSecond-hand luxury platformUndisclosedSeriesAIPS, Openwarter Investment
Endend KoreaSecond-hand luxury platformUndisclosedSeedThe Ventures
Fruits FamilySecond-hand fasion platformUndisclosedPre-series AStrong Ventures, KB Investment, Stone Bridge Ventures, Fast Ventures, Tekton Ventures
DostySecond-hand Digital device PlatfomUndisclosedSeedCNT Tech
PlavSecond-hand luxury platformUndisclosedSeedFast Ventures, Hashed
KoodonSecond-hand luxury platformUndisclosedCNT Tech
Market of MatererielSecond-hand materiel platformUndisclosedSeedAwesome Ventures, ETRI Holdings
Corner marketsecond-hand kids platformUndisclosedJoongonara
the handleSecond-hand car ecommerceUndisclosedSeedSparklab
ChexcarSecond-hand car ecommerceUndisclosedSeriesAKream, KB Securities, Lotte Ventures
Early-stage secondhand platforms in Korea

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