All Foodtech Funding Startup News in Korea (Korean Startup News)

Korean FoodTech Startup Jeongyookgak Secures ₩10 Billion Investment

2024-03-20 < 1 min read

Korean FoodTech Startup Jeongyookgak Secures ₩10 Billion Investment

Reading Time: < 1 minute

Jeongyookgak, a South Korean D2C foodtech startup, has secured a ₩10 billion investment. NH Investment & Securities, Atinum Investment, and Capstone Partners participated in this funding round, with funds set to be disbursed next week.

The company plans to use the newly acquired investment, including its subsidiary Chorocmaeul, as operational funds to drive towards profitability. Over the past year, both entities have focused on strengthening their foundations and improving performance, getting closer to profitability. They aim to accelerate efforts to secure cash flow generation capabilities.

Jeongyookgak, which began intensive restructuring in the second half of 2022 before the liquidity crisis worsened, has seen significant performance improvements. As of the end of last year, monthly operating losses decreased by 85% compared to before the acquisition of Chorocmaeul. This year, they launched over 40 new private label (PB) products synergizing with their fresh identity, expanding into various aspects of the food market.

Chorocmaeul focused on enhancing purchasing accessibility through initiatives like same-day and dawn deliveries and app redesigns incorporating AI. They also concentrated on improving profitability through a differentiated private label product strategy. Sales per franchise store in January and February this year increased by 22% compared to the previous year, showing rapid recovery.

A spokesperson for Jeongyookgak stated, “With this investment, we have laid a solid foundation to accelerate synergy beyond resolving past financial issues,” adding, “Both entities are expected to enter profitability in the first half of this year.”

[Korean Foodtech Startup News]

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