Danggeun Market, the start-up behind Karrot, South Korea’s biggest neighborhood market and networking app, revealed today that it has raised a$ 33 million Series C. The round was led by Goodwater Capital and Altos Ventures. The funding brings Danggeun Market’s overall raised up until now to$40.5 million. Its list of investors also consist of Kakao Ventures, Strong Ventures, SoftBank Ventures and Capstone Partners. Danggeun Market, which introduced Karrot in the UK last November, will utilize part of the financing to expand into more worldwide markets and increase its monetization tools. Among Karrot’s a lot of special functions is that its peer-to-peer market just reveals individuals listings from sellers situated within a 6-kilometer radius (the range is set a little broader for more remote areas), and a lot of deals are completed in person. As a precaution, all user identities are validated through their mobile numbers and location. In a call with TechCrunch, Danggeun Market co-founder and co-CEO Gary Kim and vice president Chris Heo said Karrot’s model works due to the fact that of the high population density in many South Korean cities. As the app launches overseas, the business will concentrate on other largely inhabited areas, specifically ones that do not currently have a dominant neighborhood market app. Danggeun Market planned to go into 3 new countries this year, but slowed down the rate of its growth because of the COVID-19 pandemic. Instead, it will concentrate on improving its community functions in South Korea, with the goal of launching in at least one new country by the end of this year. Danggeun Market was established in 2015 by Gary Kim and Paul Kim, both of whom formerly operated at KakaoTalk, South Korea’s biggest messaging app. Prior to Danggeun Market launched, the most popular online previously owned market in South Korea was website Joonggonara, but it didn’t have a mobile app. Being designed for mobile phones assists Karrot distinguish from other peer-to-peer markets. Its distance limits make listings simpler to find, and also motivates interactions among next-door neighbors. Its method to neighborhood networking is likewise the structure of the company’s money making model. Instead of charging listing fees, the app is free to utilize, and the business generates income through hyperlocalized marketing. Danggeun Market says its month-to-month active users have grown 130 %year-over-year, reaching seven million in April and making Karrot the second-largest shopping app in South Korea after Coupang, the nation’s largest e-commerce platform. Users invest approximately 20 minutes each day on the app, and gross merchandise value increased by 250%year-over-year
, despite the COVID-19 pandemic. Heo said the variety of listings on the app actually grew from 4.4 million in January to 8.4 million in April, as more people spent time in your home and discovered things they wished to eliminate, and likewise chosen to stay within their communities. Danggeun Market’s community functions likewise saw a dive in the number of posts made. Heo said in person deals continued, because lots of South Koreans were already used to wearing masks and other safety measures that were increase during the pandemic. The company included a new function called Karrot Aid, with tools to help match individuals with neighbors who required help running errands and a mask inventory checker for nearby pharmacies, and executed tools to instantly manage the price of mask listings and prevent profiteering.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.