KoreaTechDesk | Korean Startup and Technology News

Sat, July 26, 2025

Sign in

Virtual Demo Day
Menu
  • Home
  • Startup News
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • FinTech
    • Gadgets & Electronics
    • Health & Bio
    • Manufacturing
    • Press Release
    • IoT
    • Marketplaces & E-commerce
    • Robotics
    • Transportation
    • Investments
    • Ecosystem & Lists
  • Governments
    • Artificial Intelligence Industry Cluster Agency
    • Daegu Technopark
    • GANGNAM-GU
    • Gyeonggido Business & Science Accelerator
    • Hwaseong Industry Promotion Agency
    • Invest Seoul
    • Korea Creative Content Agency
    • Korea Internet & Security Agency
    • Korea Information Security Industry Association
    • Korea Institute of Startup & Entrepreneurship Development
    • Korea Tourism Organization
    • Korea Trade-Investment Promotion Agency
    • Ministry of Culture, Sports and Tourism
    • Ministry of SMEs & Startups
    • National IT Industry Promotion Agency
    • Pangyo Techno Valley
    • Seoul Business Agency
    • Seoul FinTech Lab
    • South Gyeongsang Province
    • Seoul Metropolitan Government
  • Events
    • COMEUP
    • Korea Fintech Week
    • K-Content Expo
    • NextRise
    • Try Everything
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
  • Programs
    • Asan Voyager
    • CAPA Global Program
    • Campus Town Program
    • SGSC Global Bootcamp
    • Gangnam-gu Global Roadshow
    • Global SaaS Marketplace Support Project
    • LAUNCHPAD
    • COMEUP STARS 120
    • K-Startup Grand Challenge
    • TIPS X beSUCCESS Global Project
    • SFL Global Program
    • KTO Global Showcase
    • Yonsei Univ Global Class
    • KOSME Global Program
  • Partner With Us
    • Press Release
    • Startup Scouting
    • Business Agencies
    • Global Mentorship Program
    • Investment Opportunities
    • K-Scouter Program
  • Lists
  • Virtual Demo Day
  • Home
  • Startup News
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • FinTech
    • Gadgets & Electronics
    • Health & Bio
    • Manufacturing
    • Press Release
    • IoT
    • Marketplaces & E-commerce
    • Robotics
    • Transportation
    • Investments
    • Ecosystem & Lists
  • Governments
    • Artificial Intelligence Industry Cluster Agency
    • Daegu Technopark
    • GANGNAM-GU
    • Gyeonggido Business & Science Accelerator
    • Hwaseong Industry Promotion Agency
    • Invest Seoul
    • Korea Creative Content Agency
    • Korea Internet & Security Agency
    • Korea Information Security Industry Association
    • Korea Institute of Startup & Entrepreneurship Development
    • Korea Tourism Organization
    • Korea Trade-Investment Promotion Agency
    • Ministry of Culture, Sports and Tourism
    • Ministry of SMEs & Startups
    • National IT Industry Promotion Agency
    • Pangyo Techno Valley
    • Seoul Business Agency
    • Seoul FinTech Lab
    • South Gyeongsang Province
    • Seoul Metropolitan Government
  • Events
    • COMEUP
    • Korea Fintech Week
    • K-Content Expo
    • NextRise
    • Try Everything
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
  • Programs
    • Asan Voyager
    • CAPA Global Program
    • Campus Town Program
    • SGSC Global Bootcamp
    • Gangnam-gu Global Roadshow
    • Global SaaS Marketplace Support Project
    • LAUNCHPAD
    • COMEUP STARS 120
    • K-Startup Grand Challenge
    • TIPS X beSUCCESS Global Project
    • SFL Global Program
    • KTO Global Showcase
    • Yonsei Univ Global Class
    • KOSME Global Program
  • Partner With Us
    • Press Release
    • Startup Scouting
    • Business Agencies
    • Global Mentorship Program
    • Investment Opportunities
    • K-Scouter Program
  • Lists
  • Virtual Demo Day
Home Startup Investments

Woowa Brothers: The Korean food-delivery app business’ journey from being a unicorn to a dynamic global acquisition deal

by KoreaTechDesk Writer
January 2, 2020
in Investments
15
0
SHARES
447
VIEWS
Share on FacebookShare on Twitter

The year 2019 turned out to be the most successful year for the Korean food delivery app, ‘Baedal Minjok’ operator company – the Woowa Brothers and its investors. The startup had attained the unicorn status, just before entering 2019 and the company exited the year with a successful takeover by German company Delivery Hero for $4 billion.

Woowa Brothers – A startup to a profitable deal

Launched in 2010, Woowa Brothers has been one of the fastest growing online food delivery service providers in Korea, with over 30 million orders per month. The deal of Woowa Brothers with Delivery Hero (DH), its closest rival in South Korea operating the app ‘Yogiyo,’ is considered a strategically smart move by experts. On the one hand, the acquisition will strengthen the capabilities of both companies facing a rise in the number of competitors like Uber Eats (that pulled out of the Korean market), Coupang Eats, etc. And on the other hand, a foreign merger dissolves the pressure of putting out an Initial Public Offering (IPO) in the domestic market for Woowa Brothers.

Woowa Brothers have successful investments since its founding with global venture companies putting in large stakes in the company. The startup had seen an investment of 40 billion won or about $ 34 million from Goldman Sachs in 2014, 57 billion won from Hillhouse Capital in 2016, and 35 billion won or about $ 30 million from Naver. In December 2018, the startup joined the ‘unicorn’ billionaire club with investments worth $320 million from Hillhouse Capital, US-based Sequoia Capital, and GIC, Singapore’s sovereign wealth fund.

Kim Bong-Jim, CEO and founder of Woowa Brothers

The Joint Venture with DH will see the German company acquire an 87% stake held by Woowa investors, with a future vision to acquire the remaining 13 % from the management. The CEO and founder of the company Kim Bong-Jim will become the Chairman of the Board of Directors and Executive Director of the Joint Venture to manage the operations of the Delivery Hero group in the Asia Pacific region and oversee expansion in the region. The acquisition will help Woowa Brothers leverage the global expertise of Delivery Hero and expand its foothold in the Asian region. “The partnership will help achieve economies of scale to compete against global and domestic IT giants effectively. Together we aim to cultivate and invest in the development of online food delivery services for the benefit of consumers, restaurants and riders,” is what Kim Bong-Jim has said in a media statement about the merger. The acquisition, termed as the largest food delivery service deal globally, is considered as the most significant of inbound investment in the South Korean startup and technology sector.

Delivery Hero to get a stronger foothold in the Asian market

For German company Delivery Hero, the acquisition means a deeper penetration in the fast-growing Korean food delivery market and further expansion in the Asia-Pacific region. South Korea’s online food delivery market has doubled in the past five years to $5.9 billion. It is much bigger than Japan and Germany markets combined, trailing only China, the UK and the USA, as per a report by Euromonitor. The increase in single people households in Korea means a boom in food delivery services, which is expected to cross $9 billion by 2023. DH will now have enough leverage in the domestic market in Korea with a merger with its once rival company Woowa Brothers.
As the European food delivery market gets more competitive, the Woowa deal will prove to be a strategic investment for DH.

Baedel Minjok delivery outlet.

Woowa Investors hit the jackpot.

The investors in the Woowa Brothers’ startup are reaping fruits of profit with the acquisition deal. The early-stage investors like Bon Angels Venture and Naver have got multiple returns on their investment amount with the deal. Bon Angels had invested 300 million won or about $ 259,796, and Naver had put in 35 billion won or about $30 million. For Bon Angels – the profit is almost 1000 times the investment it made and Naver earned nearly six times the investment made two years ago. From selling its 3.72% (221.2 billion won or $ 191 million) share, Naver will receive $ 100 million (or 116.6 billion won) in cash, and $89 million (103.8 billion won) in Delivery Hero’s share (0.6%).

Besides, the other major investors in Woowa Brothers, such as Altos Ventures, Goldman Sachs, Sequoia Capital China, and Government of Singapore Investment Corporation (GIC), are also likely to benefit significantly from this deal. The 13% shares that Kim Bong Jin and other significant executives hold will be eventually transferred to Delivery Hero shares. CEO Kim will not leave the company but become the leader of the joint venture (JV) between Delivery Hero and Woowa, “Woowa DH Asia” to expand food tech business beyond Korea, to Asia.

Awaiting the Final Leap

Now, with DH’s Yogiyo and Baedal Minjok merger, the company may get a whopping 98.7 % of the user market for the food-delivery related app. According to a data released by the Korea Consumer Council in July 2018, the market share of Woowa Brothers was 55.7% of the nation’s delivery, Yogiyo 33.5%, and rest 10.8%. This has triggered concerns about hampering competition in the Asian country, and the deal is now under the scrutiny of South Korea’s Fair Trade Commission (FTC). The process by FTC to look into the deal’s potential to restrict competition and result in price hikes and price-fixing could take at least 120 days.

Meanwhile, as the global phenomenon of acquisitions in the food-delivery app service gets heated, the December deal between DH and Woowa brothers has been termed as one of the biggest to date by market analysts. In the US, DoorDash Inc. bought Square Inc.’s Caviar app for $410 million in August, and in the UK, Takeaway.com, and tech investment firm Prosus NV are trying to acquire Just Eat Plc valued at about $5.52 billion. Delivery Hero had sold its German food delivery businesses to Takeaway.com last year. Woowa Brothers and Delivery Hero’s joint venture will be named Woowa DH Asia and will be based in Singapore and will tap 11 other countries in the sub-continent for expansion.

Deal under scrutiny & COVID-19 impact

The Delivery Hero-Woowa Brothers deal is being reviewed by the country’s Fair Trade Commission (FTC). The FTC is looking into the matter that the deal may not grant a monopoly status to Delivery Hero in Korea’s food delivery business. Delivery Hero already owns two other Korean delivery apps. With the Baemin acquisition, DH would control the majority of Korea’s delivery app market.

Woowa Brothers also came under criticism when it announced a change in commission system for restaurants, charging them a 5.8 % fee for each online order instead of a monthly charge. Later the startup apologized and promised to review the new measures. The FTC will be considering the new commission system for its review as well. The FTC wants to ensure that any changes in fees don’t impact the end consumer.

Meanwhile, because of COVID-19, the country has seen a surge in the food delivery app. Baemin also saw an increase in demand. As per a report, the deliveries increased by 9% in February 2020 compared to February 2019. To ensure safety for deliveries, Baemin has been ensuring its riders wear masks and have sanitizers with them. The startup has also promised to financially support the riders in the case of COVID-19 quarantine. The company has advised its customers to make digital payment in advance to avoid any face to face interactions.

What’s your thoughts?
+1
1
Upvote
+1
0
Clap
+1
0
Clap
+1
0
On fire
+1
0
Meh
+1
0
Clap
+1
0
Tags: AcquisitionBaedal MinjokCoronavirusDelivery HeroFood Delivery AppGerman CompanyJoint VentureKorean StartupunicornWoowa Brothers
Previous Post

Top 3 Korean blockchain startups that are re-defining the blockchain industry

Next Post

Korean Medical AI startup Lunit secures $26 million funding for global expansion

Next Post

Korean Medical AI startup Lunit secures $26 million funding for global expansion

Please login to join discussion

POPULAR POSTS

‘Solar Pro 2’: Korean First Global AI Frontier Mode...
Korean AI startup Upstage has made history.…
by KoreaTechDesk Writer . 22 Jul 2025

Korean Startup Suriwang Manager Gains 70+ Clients in a ...
Repair marketing is getting smarter and more affordable with Suriwang Manager, a fast-growing AI-powered marketing tools from Korean startup Team…
by KoreaTechDesk Writer . 22 Jul 2025

AI SPERA: South Korea’s AI Cybersecurity Company Scal...
In a world where cyber threats evolve by the second, South Korean cybersecurity startup AI SPERA is emerging as a…
by Dae-jung Park . 18 Jul 2025

SCATTERX: A No-Code Data Intelligence Platform Pioneeri...
As digital and AI sovereignty emerge as critical strategic assets, SCATTERX is leading the way in realizing Sovereign AI for…
by Daehyun Song . 19 Jul 2025

Korean Government Launches New Smart Safety Tech Progra...
South Korea’s Ministry of SMEs and Startups (MSS) has launched a major new smart safety tech program aimed at reducing…
by Chloe kim . 24 Jul 2025

Register for Event

MOST READ ARTICLE OF THE WEEK

1.
South Korea’s Ministry of SMEs and Startups Unveils $2.23 Billion Support Plan for Startups in 2025
3 Jan 2025
2.
South Korea Shines at CES 2025: Global Innovation Champion, Record-Breaking K-Startup Pavilion, Award-Winning Innovations
10 Jan 2025
3.
South Korea Opens Applications for the 10th K-Startup Grand Challenge 2025 – Korea’s Flagship Market-Entry Program Offering ₩950M (US$633K) in Government Support 
7 May 2025
4.
K-Startup Grand Challenge : Empowering Global Startups and Driving Innovation in South Korea
28 Apr 2025
5.
Korea Innovation Convergence Summit 2025: Advancing Korea-U.S. Collaboration in SaaS, Infrastructure, & Public Sector Innovation
17 May 2025

List Article

1.
6 Reasons Why Seoul Is Poised to Become a Top 5 Global Economic Hub by 2030
20 Aug 2024
2.
Top Co-working Spaces for Startups & Companies to Explore in South Korea
3 Apr 2024
3.
Top Accelerators in South Korea Shaping Startup Success
29 Nov 2023
4.
Top Korean Venture Capital Firms Backing Startup Success
26 Oct 2023
5.
Top Apps for Seamless Korean to English Translation
14 Aug 2023

Similar Articles

Investments

Needer Expands Spot Work Market with Strategic Investment from Japan’s Timee

More
company K-Work Partners Co., Ltd.
InvestmentsStartup

K-Work Partners Secures Seed Investment to Enhance Support for Foreign Workers in Korea

More
IFA Korea
InvestmentsStartup

Ulsan ICT Promotion and Gangwon Agencies Achieve Major Success at IFA 2024, Securing $26 Million in Export Consultations

More

Topics

Menu
  • AI & Big Data
  • AR & VR
  • Blockchain
  • Clean Technology
  • Content & Games
  • Cybersecurity
  • Enterprise & SaaS
  • FinTech
  • Gadgets & Electronics
  • Health & Bio
  • IoT

Program

Menu
  • Asan Voyager
  • CAPA Global Program
  • SGSC Global Bootcamp
  • LAUNCHPAD
  • COMEUP STARS 120
  • K-Startup Grand Challenge
  • TIPS X beSUCCESS Global Project
  • SFL Global Program
  • KTO Global Showcase
  • Yonsei Univ Global Class
  • KOSME Global Program

About

Menu
  • About Us
  • all articles
  • Terms of Use
  • Privacy
  • Cookie-policy
  • twitter

Subscribe and be informed first hand about actual Korean startup news.

All the day’s headlines and highlights, direct to you every morning.

Contact us : [email protected]

Topics

Menu
  • AI & Big Data
  • AR & VR
  • Blockchain
  • Clean Technology
  • Content & Games
  • Cybersecurity
  • Enterprise & SaaS
  • FinTech
  • Gadgets & Electronics
  • Health & Bio
  • IoT

Program

Menu
  • Asan Voyager
  • CAPA Global Program
  • SGSC Global Bootcamp
  • LAUNCHPAD
  • COMEUP STARS 120
  • K-Startup Grand Challenge
  • TIPS X beSUCCESS Global Project
  • SFL Global Program
  • KTO Global Showcase
  • Yonsei Univ Global Class
  • KOSME Global Program

About

Menu
  • About Us
  • all articles
  • Terms of Use
  • Privacy
  • Cookie-policy
  • twitter

Subscribe and be informed first hand about actual Korean startup news.

All the day’s headlines and highlights, direct to you every morning.

© 2023 Koreantech News & Media Korea Zrt. All rights reserved.

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

We hope you enjoy our content, May you please give us Feedback regarding our website!

Single Post Feedback

dgdfgfdgdf

What you think about Koreatechdesk, Share your idea with us!

feedback popup

Invitation submission has been closed

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.