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Daangn Records First Profit in 8 Years with Remarkable Growth in 2023

2024-03-31 2 min read


Daangn Records First Profit in 8 Years with Remarkable Growth in 2023

Reading Time: 2 minutes

South Korea’s popular second-hand trading platform, Daangn, announced it achieved its first annual profit since its inception in 2015, with an operating profit of KRW 17.3 billion last year. Daangn’s revenue in 2023 surged by 156% to KRW 127.6 billion from KRW 49.9 billion in 2022, marking a significant milestone with an annual operating profit of KRW 17.3 billion.

Boasting a cumulative membership of 36 million and close to 19 million monthly active users (MAU), Daangn has become a staple app in South Korea, demonstrating substantial growth annually. The revenue of KRW 127.6 billion in 2023 represents an over tenfold increase in just three years, following the launch of its local community initiative, “Neighborhood Life,” which generated KRW 11.8 billion in 2020 (figures pertain to Daangn Market individually).

On a consolidated basis, which includes overseas subsidiaries in North America, Japan, and the operating costs of its payment service, Daangn Pay, the company faced an operating loss of KRW 1.1 billion. However, the company significantly reduced its operating loss by more than 98% compared to the previous year, showcasing the effectiveness of Daangn Market’s profit generation efforts, and recorded a net profit of KRW 2.4 billion.

The surge in performance is attributed to its advertising business. Daangn’s advertising platform, recognized as the premier advertising solution in the hyperlocal era, has demonstrated significant growth and competitiveness. The platform has seen a steady increase in the number of advertisers and ads run each year, with advertising revenue growing more than 2.5 times year-over-year. The advertising revenue has been doubling annually, with an average growth rate of 122% over the past three years. Daangn is planning to further solidify its position as a leading hyperlocal marketing channel by continuing to enhance its advertising platform and diversifying its offerings.

Leveraging this growth momentum, Daangn is set to further accelerate its investment in new ventures. It aims to establish new business models in specialized areas such as recruitment, used cars, and real estate. Additionally, it plans to develop a hyperlocal financial ecosystem through Daangn Pay, South Korea’s first local-based financial service, aiming to expand its revenue streams beyond the advertising platform and diversify its business.

The company is also rapidly advancing its global market strategy. Daangn, which entered the UK market in November 2019 under the name “Karrot,” has now extended its services to over 560 locations across four countries, including Canada, the USA, and Japan. Notably, in Canada, Daangn’s monthly active users in February 2024 saw a more than threefold increase year-over-year, and in Japan, the increase in monthly active users was even more impressive, at over 3.5 times year-over-year.

Daangn’s CEO, Do-yeon Hwang, expressed, “Even amidst challenging global economic conditions, we managed to secure our first annual profit since the company’s founding, thanks to significant revenue growth and cost reductions. With a strong foundation of steady growth, our focus shifts to investing in our future vision rather than merely maximizing short-term profits. We are committed to enhancing our service’s competitive edge as a local community platform and fulfilling our hyperlocal vision by capturing the myriad connections within neighborhoods.”

[Startup News in Korea]

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