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

Bungaejangter Secures KRW 40 Billion Series E Funding, Valuation Hits KRW 500 Billion

2024-07-11 2 min read

Bungaejangter Secures KRW 40 Billion Series E Funding, Valuation Hits KRW 500 Billion

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South Korean fashion secondhand trading platform Bungaejangter has secured KRW 40 billion (approximately USD 30.6 million) in Series E funding.

Hana Alternative Assets Management led this investment round. With this Series E funding, Bungaejangter’s corporate value is expected to reach approximately KRW 500 billion (approximately USD 382.5 million).

Despite a subdued investment sentiment towards startups, Bungaejangter’s successful funding round is attributed to its business strategy of solving problems in the traditional secondhand trading process, thereby adding value. In 2023, platform-based revenue increased by over 50% compared to the previous year.

Notably, the authenticity verification service ‘Bungae Care,’ launched in December 2022, saw a rise in users aged 35-44. Along with the secure payment service ‘Bungae Pay,’ these paid services have grown rapidly. Bungaejangter anticipates more than doubling its revenue this year compared to last and expects to achieve profitability in 2024.

Hana Alternative Asset Management stated, “Bungaejangter has been the most proactive platform in evolving the buying and selling journey of secondhand goods. As the representative app for everyday secondhand transactions among the MZ and Alpha generations, its growth potential is significant.”

Bungaejangter CEO Choi Jae-hwa commented, “We continuously introduce new services to enhance customer convenience in secondhand transactions, including strengthening authenticity verification, establishing secure payments, and launching overseas direct purchase options as the first in the secondhand trading platform industry. We will continue to improve usability and safety, aiming to establish a stress-free, tech-based secondhand trading platform.”

Meanwhile, Bungaejangter is recognized for its significant growth potential, being the leading secondhand trading app for the MZ generation. As of Q1 2023, users of the authenticity verification service ‘Bungae Care’ in their 20s accounted for 37% of total users, while users in their 30s represented 43%. In June, Bungaejangter launched the ‘Overseas Tab’ in collaboration with Japan’s largest secondhand trading platform Mercari, providing a unique cross-border secondhand trading experience through a single app.

[Korean Commerce Startup News]

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