Korea’s number one property search platform Zigbang has received an investment of 33.5 billion won ($27 million) through the Venture Investment Association. The proptech startup had attained a corporate valuation of 2 trillion won last month after an acquisition deal, which is double the value in a year. Zigbang has increased profitability by establishing a dominant platform used by 8 million monthly users.
The latest funding was headed by Black Pearl Ventures, which established a proptech fund and gathered institutional investors. The investment is designed with two investment structures: senior and subordinated. MG Saemaul Geumgo Federation, a major player in the capital market, confirmed an investment of 16 billion won as a senior anchor limited liability investor (LP). Insurance companies and capital companies participated in recruiting senior and subordinated positions. The fund is designed to receive priority distribution to senior investors to ensure a specific return rate and distribute a portion of excess profits to subordinate shareholders (profit sharing).
Zigbang recorded 47 billion won in advertising sales for one room, officetel, and villa. It has a 40% market share. The area is growing steadily every year. The sales level is expected to reach 64 billion won within three years. Sales of new pre-sale advertisements also increased explosively, jumping from 2 billion won in 2020 when the business started to about 9 billion won in 2021. This year’s sales are expected to exceed last year’s.
Partnerships, acquisitions & expansion push growth
The apartment joint brokerage partnership with Ontact Partners is also considered a strength. Zigbang plans to further partner with an authorized broker this year. The apartment brokerage business in Korea is expected to record annual sales of 700 billion won within three years. The property search in the Korea industry is expected to generate about 40 billion won in net sales per 1,000 people.
Zigbang’s acquisition of Samsung SDS’ smart home Internet of Things ( IoT ) division also helped the growth. The startup plans to innovate the future residential environment by combining Samsung SDS’ smart home division’s hardware (HW) and Zigbang’s software (SW) technology. In terms of sales, smart homes and door locks, which currently cost only 1 million won to construct an apartment, are expected to cost 10 million won with a new approach.
Last month Zigbang established ‘Soma,’ a global virtual office platform in metaverse space and an upgraded version of its metaverse office service Metapolis developed in July 2021. Currently, the platform is occupied by Our Home, Startup Promotion Agency, Hyundai Engineering, Flitto, Timon, and Great Imagination.
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