South Korean e-commerce platform TMON successfully raises $278 million in pre-IPO funding

As South Korean e-commerce giant Coupang moves forward with its listing on the New York Stock Exchange, the listing preparations of other South Korean e-commerce companies are also attracting much attention.

South Korean e-commerce company TMON announced on the 19th that the "PSA Alliance" led by PS Alliance, a Korean private equity fund (PEF) manager, has received 255 billion won in investment from domestic institutions and foreign capital. The existing largest shareholders Coleberg Kravis Roberts (KKR) and Anchor Equity Partners also invested 50 billion won.

The total investment is 305 billion won (US$277.55 million), all of which are TMON bonds that can be converted into shares. The exchangeable bonds (EB) purchased by investors this time can be cashed out when they mature in three years, or converted into common shares after TMON is listed. Investors also have the right to request the listing of shares.

TMON was founded in 2010 and was once known as one of the "Three Musketeers of Social Commerce" along with Coupang and We Make Price. The company has suffered losses in recent years, with capital losses amounting to 550.6 billion won as of 2019.

However, as the largest group buying website in Korea, TMON naturally has its own unique features. Its greatest competitive advantage is the "Time Commus" that launches special products in seconds and minutes.

In 2020, when the pandemic was raging , TMON also achieved good results. Last year, the number of new TMON users increased by 47.8% compared to the year before, and the number of users in their teens increased nearly three times.

Based on the third quarter of 2020, the number of TMON's premium membership "Super Seve" members increased fivefold compared to the same period last year, and sales increased 5.5 times. According to statistics, their purchase amount also increased by more than three times.

TMON started planning for its IPO last year , but due to its fragile financial situation and capital cannibalization, it conducted a final round of financing before its IPO to strengthen its capital base, improve its financial statements, and ultimately achieve a IPO.

TMON also stated: "Through this investment promotion, we can not only eliminate capital cannibalization and promote IPO, but also obtain the funds needed for growth."

As TMON successfully attracted investment this time, a TMON executive also said: "Our goal is to go public in the fourth quarter of this year. In order to improve performance, we are preparing new services to enhance the functionality and performance of the platform."

Korean e-commerce

TMON

IPO