Korean startup Kurly, which operates the daily grocery shopping app Market Kurly, has finally started the full-fledged IPO process by applying for preliminary examination for listing on the Korea Stock Exchange (KOSPI). The startup was to file for the initial public offering review by the end of February necessary for stock listing in the first half but had failed to do so that time. Unfavorable market conditions were suspected to be the reason behind the delay. An IPO review requires about 45 days.

Kurly hopes for great company valuation with IPO

Kurly Corp. applied for preliminary approval on March 28th, with a possibility of an IPO launch in the second half of the year. Kurly’s offering gives the company a potential market capitalization between 4 trillion won ($3.3 billion) and 6 trillion won. The e-commerce company hopes to price the shares around 90,000 to 130,000 won.

Kurly has selected NH Investment & Securities, Korea Investment & Securities, and JP Morgan as the lead organizers. Kim Jong-hoon, Curley’s Chief Financial Officer (CFO), said, “Application for the preliminary examination is the first step in promoting the listing. We plan to proceed with the listing at the optimal time by comprehensively reviewing the market conditions, and to this end, we will closely consult with shareholders, organizers and exchanges.”

Market Kurly’s record growth in the last three years

Market Kurly, the first early morning delivery service in South Korea, was launched in May 2015. Its ‘Saetbyeol Delivery’ is popular, where if a customer orders a product before 11 pm, it is delivered by 7 am the next day.

Kurly also proved its growth potential last year. In 2021, the total transaction amount reached 2 trillion won, which is a 65% increase from the previous year. The number of subscribers also increased by 43% compared to last year, exceeding 10 million. It is also noteworthy that the company achieved a profit for the third year in contribution margin, which is a leading indicator of the turnaround in operating profit.

In addition, proactive investments were made to expand logistics facilities, which will be the engine of sustainable growth, recruitment of large-scale developers, and strengthening of data capabilities. Last year, the Gimpo logistics center was additionally operated, increasing order processing capacity 2.3 times. Saetbyeol delivery areas have also been greatly expanded from the metropolitan area to Chungcheong, Daegu, Busan, and Ulsan. The tech workforce also increased from 100 to more than 200, accounting for 20% of the total number of office workers.

More on Market Kurly,

• Market Kurly attracts $210 million pre-IPO investment from single backer Anchor Equity
• Kurly acquires payment gateway startup Paybot; to start its own payment system 
• Market Kurly: The Fresh Food Delivery Service Korean Startup proving to be a fruitful investment
• Korean startups get named in FT’s list of ‘High-Growth Companies in Asia-Pacific’