Today, the global machine industry is pegged at $2.4 trillion and in Korea itself the industry generates $92 billion every year, making up for 7% of the total GDP. Despite such a strong presence, 99% of the industry is SME, old generation, lacks resources and manpower depends highly on the domestic market. This creates a huge gap between global buyers and suppliers. The complicated export process and poor communication and reachability have been a hurdle in the industry’s growth.
First of its kind online platform to multiply the scope
Komachine is the largest machine b2b site in Korea and the only startup in Asia transforming offline machine industry to online. The platform has connected over 40,000 Korean machine suppliers having 1.5 million products to 10 million global users. There are major 10 machine categories — Agriculture, Chemical, Construction, Electric/Electronic, Industrial, Machine Tools, Material Handling, Medical, Packaging, Rubber, Plastic and Textile — that are featured.
Komachine aims to transform offline based machine industry information and simplify the complicated export process by connecting machine suppliers with global buyers online. It uses a unique upload system, designed to upload millions of unorganized machine industry data on the system.
Changing the machine industry, and how!
Komachine became the largest online machine platform in Korea, showing 5,000 DAU from 150 countries. Within 2 years the total transaction volume hit $20 million with 500 customers from 45 countries, out of which 25% of the customers are multinational and stock-listed companies with a re-purchase rate up to 70%.
Due to the booming petrol chemical industry and shipping industry in the Middle East region, Komachine has expanded its reach in the area. Around $1-3 billion of spare parts are purchased every year by clients in the Middle East. Since most of the petrol chemical plants in the Middle East are built by Korean Companies, Komachine enjoys a good market presence. In Dubai, Komachine has 100 buyers, 80 in Saudi Arabia and around 50 in Kuwait and other areas.
The company is making around $400,000 ~ 600,000 in revenues every month and expects $5 million revenue in 2019. A major part of revenue comes from trade transaction in export and commissions while 20% of the total revenue is generated online such as product and company registration. The company expects to reach $15 million Revenue by 2020.
Komachine’s team will be attending the GITEX TECHNOLOGY WEEK to be held from October 6 to 10 in Dubai, supported by the Korea Institute of Startups & Entrepreneurship Development (KISED). The GITEX is the biggest tech show in Middle East, North Africa and South Asia that attracts many prominent leaders from global companies, major media outlets, and influential investors.