Korean internet giant Kakao is all set to acquire a stake in the fashion e-commerce Zigzag app startup Croquis. Kakao announced its plan to spin off a style business division by merging its subsidiary Kakao Commerce with Croquis. The joint venture is likely to be launched officially in July 2021. Kakao has not yet announced any specific price details, but Korean media reports suggest that more than $900 million or 1 trillion won.
Fashion app popular among women
Korean fashion app Zigzag has been a successful venture in the world of shopping. The app developed by Croquis Inc. focuses on women’s fashion in South Korea and is a must-have app for 75 % of women in their 20s in the country. Founded in 2015 by CEO Seo Jung-hoon, ZigZag has more than 4,000 fashion brands to offer to customers. The app had registered more than 3 million monthly users as of the end of 2020. Croquis recorded about $35 million or 40 billion won in revenue in 2020.
Talking about the meger CEO Seo Jung-Hoon told Korean media, “We anticipate that the merger of ZigZag, which has achieved innovation in customer experience through big data it acquired in the fashion sector, and Kakao, the country’s major IT company, would be able to create the ultimate synergy.”
“ZigZag’s high competitiveness and potential for growth have already been proven in the fashion e-commerce market,” said Bae Jae-hyun, an executive vice president at Kakao told media, “Utilizing the global content and influential following that Kakao has, we anticipate [the new venture] will become a global fashion platform by expanding the service to many Asian companies including in China and Japan.”
Read more,
- Korean startup Croquis’ ZigZag App winning over Gen Z fashion shoppers
- Korean Fashion App Zigzag making profitable ‘fashion’ statements
- Top business & economy news this week from South Korea
- 5 Korean fashion startups that are making a statement!
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