In a significant move signaling the growing importance of South Korea’s burgeoning online fashion market, Chinese e-commerce giant Alibaba Group Holding Ltd. has invested 100 billion won ($71.4 million) in Ably Corporation, the operator of South Korea’s leading women’s style commerce platform. This investment grants Alibaba a 5% stake in Ably, underscoring the Chinese company’s intent to solidify its position in the competitive global e-commerce landscape.
The investment, Alibaba’s first equity stake in a Korean shopping app platform, propels Ably to unicorn status, with its valuation skyrocketing to approximately 3 trillion won ($2.1 billion). This milestone cements Ably as South Korea’s first unicorn startup of 2024 and highlights its rapid growth trajectory since its founding in 2018.
Strategic Importance of Alibaba’s Stake
Alibaba’s investment is a strategic move to tap into South Korea’s thriving e-commerce market, particularly in the fashion segment, where Ably has established dominance. The company’s AliExpress platform already competes with Korean giants like Coupang and Gmarket, as well as global players such as Shein and Temu. This partnership not only enhances Alibaba’s presence in Korea but also positions it to leverage Ably’s expertise in K-fashion as a gateway to other global markets.
Ably’s Meteoric Rise
Ably’s swift ascent to unicorn status is remarkable. The platform has grown exponentially, with its transaction volume soaring from 700 billion won in 2021 to over 2 trillion won annually as of 2024. This growth, coupled with its profitability—Ably posted its first operating profit of 3.3 billion won last year—has made it a standout in Korea’s tech startup ecosystem.
The company operates a suite of platforms, including its flagship Ably app, the men’s fashion platform 4910, and the Japanese fashion app Amood, which have collectively garnered over 9 million monthly active users. By capitalizing on the global popularity of Korean culture—spanning K-pop, K-beauty, and now K-fashion—Ably has successfully positioned itself as a leader in style commerce.
Driving Factors Behind Ably’s Success
Ably attributes its success to several key factors:
- Global Expansion: Ably has actively supported Korean sellers in reaching international audiences, leveraging platforms like Amood to penetrate key markets in North America and Southeast Asia.
- Technological Edge: The company’s proprietary AI-driven recommendation algorithm, developed over 15 years by experts in personalization, enhances user experience and drives engagement.
- Diverse Portfolio: From introducing Ably Pay, an easy payment solution, to expanding into men’s fashion with 4910, Ably has diversified its offerings while maintaining its core focus on fashion.
Future Plans & Vision
With Alibaba’s backing, Ably plans to further expand its global footprint and enhance its technological capabilities. The company is actively pursuing an additional 100 billion won in investments from Silicon Valley firms and sovereign wealth funds. Key priorities include bolstering its product offerings, refining its UI/UX, and strengthening its global seller network to facilitate seamless cross-border commerce.
“Even in a time when investment sentiment has frozen, we have succeeded in increasing corporate value and achieving unicorn status, which has once again served as an opportunity to recognize Ablely’s business viability and growth potential.” said Kang Seok-hoon, CEO of Ably Corporation, “Based on our unrivaled technological prowess, big data, and other success formulas we have built up to date, we will further solidify our position as the leading recommendation-based style commerce company in Korea and continue to expand our competitiveness in the global market.”
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