이 기사는 2021년 04월 27일 08:03 thebell 에 표출된 기사입니다.

Kurly’s valuation has been on a steep increase since its inception, raising expectations that early investors in the South Korean startup may lock in huge profits in its planned US initial public offering.

Kurly, which operates the online grocery delivery platform Market Kurly, is working with Morgan Stanley to raise 300 billion won ($270 million) in a new funding round ahead of an expected stock market floatation. The Seoul-based company reportedly targets a valuation of 3 trillion won, more than a three-fold increase from the previous funding round in May last year which raised 200 billion won at a valuation of 900 billion won.

The potential returns for early investors in Kurly are huge given the rapid increase in the company’s valuation, industry watchers said.

A consortium of Scientists and Engineers Mutual-aid Association (SEMA) and Translink Capital is one of the early investors in Kurly. The South Korean credit union and the US-based venture capital firm initially invested in the startup through their joint venture, SEMA Translink Investment, which was set up in 2015. The partnership recently expired, and their vehicle that invested in Kurly is co-managed by the two investors.

The consortium is understood to own some 6% of Kurly. It has participated in several rounds of funding for Kurly with its investment reportedly totaling 13.5 billion won.

SEMA and Translink first invested 4.1 billion won in the company in a Series B funding round in 2016. The transaction involved the purchase of redeemable convertible preferred shares at an exercise price of 228,366 won.

Based on the equity value calculated with this price and Kurly’s net borrowing of 3.5 billion won at the end of 2016, the Series B round is estimated to have valued the startup at 42 billion won, versus the 3 trillion won valuation set in its upcoming funding round.

They also purchased bonds with warrants issued by Kurly in 2017 at an exercise price of 293,000 won in a deal that is estimated to have value the company at 66 billion won.

Kurly hired Goldman Sachs, JPMorgan and Morgan Stanley last month to lead preparations for a US listing. It previously mandated local brokerage firm Samsung Securities as lead underwriter but canceled the contract earlier this year, a move seen as a sign that the company is targeting a listing in the US where it could be priced at a higher multiple than in South Korea.

Kurly’s US listing at an increased valuation would provide a great opportunity for its early investors to make an exit. Coupang, the country’s largest player in the ecommerce market, listed its shares in the New York Stock Exchange in March. The listing is estimated to have generated a return of 10 times invested capital for Japan’s SoftBank, which owns 33.1% of Coupang.

“Kurly’s US listing, if it happens, would likely generate huge returns for its early investors,” an industry insider said. (Reporting by Byung-yoon Kim)