Online grocery-delivery startup Kurly wins US$150m funding
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South Korean premium grocery-delivery firm Kurly has procured funding of US$150 million from its existing investors.
Backers contributing to the Series E funding round were Sequoia Capital, Hillhouse Capital, and Digital Sky Technologies, placing the firm’s valuation at roughly $780 million, according to Deal Street Asia.
Despite the positive outlook as a successful attraction of more than KRW400 billion ($329 million) over five rounds, the firm remains in the red as labor and operational costs drain profits while competition intensifies. It is expected that the coronavirus epidemic may yield a positive benefit to the firm as South Koreans stay home to avoid infection and order their food online.
The Market Kurly app introduced the “full cold-chain” temperature-controlled supply chain system to the country, allowing users to order fresh produce in the evening to be delivered to the home by dawn.
Questions & Answers
Q.Which investment firms contributed to Kurly's recent funding round?
Which investment firms contributed to Kurly's recent funding round?
Existing investors Sequoia Capital, Hillhouse Capital, and Digital Sky Technologies contributed to Kurly's Series E funding round. These firms helped the South Korean grocery-delivery startup secure US$150 million.
Q.What is Kurly's current valuation after this funding round?
What is Kurly's current valuation after this funding round?
According to Deal Street Asia, the recent funding round places Kurly's valuation at roughly $780 million. This follows the firm's successful attraction of US$150 million from its existing investors.
Q.Why has Kurly not yet turned a profit despite significant funding?
Why has Kurly not yet turned a profit despite significant funding?
Kurly remains in the red as its labour and operational costs are draining profits. Also, the firm faces intensifying competition in the South Korean grocery-delivery market, impacting its financial performance.
Q.How does Kurly ensure the freshness of its delivered produce?
How does Kurly ensure the freshness of its delivered produce?
Kurly ensures freshness through its 'full cold-chain' temperature-controlled supply chain system, which was introduced via the Market Kurly app. This system allows for fresh produce ordered in the evening to be delivered by dawn.
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