Kream poised to become unicorn after closing $157 mn Series C round 

Kream, a customer-to-customer (C2C) platform for buying and selling limited-edition sneakers, is slated to close the Series C round with a 200 billion won ($157.831 million) injection of fresh funds.

Once the round is completed, the Naver Corp. affiliate is forecast to become a unicorn, which in Korea refers to a startup worth 1 trillion won.

CORPORATE VALUE DOUBLES

Kream is expected to raise an additional 20 billion won next month, according to those familiar with the development. The startup raised 170 billion won during the Series C round that began this month. 

Its corporate value is estimated at 920 billion won. 

Industry insiders say that if the total funds raised during the Series C round through the next month exceeds 200 billion won, its corporate value will also surpass 970 billion won. Kream’s corporate value has more than doubled in about a year; the figure stood at around 400 billion won last October. 

Its parent company, Naver subsidiary Snow Corp.; US venture capital firm Altos Ventures; and Softbank Ventures are its major investors.

In addition to limited-edition sneakers, users can buy and sell watches and other high-end items on Kream's namesake platform. The trading platform also features toys, albums and game cards. 

Since its founding in March 2020, Kream has enjoyed exponential growth thanks to robust demand for unique fashion items among millennials and Gen Z consumers.

Its trading volume for the first quarter of this year reached 370 billion won, a whopping 194% jump from the same period a year earlier. 

Total trade volume for this year is forecast to exceed 1 trillion won.

BORDERLESS TRADING

Kream will use the latest round of funds to advance its services and invest in C2C platforms beyond Korea.

The company’s long-term goal is to create a C2C platform ecosystem that encompasses multiple markets including Japan, Singapore and Thailand.

Such a platform would enable a user in Seoul to purchase a pair of limited-edition sneakers sold only in Thailand. 

Kream has poured more than 60 billion won into its C2C platforms since last year, half of which was spent this year alone. 

The startup purchased a 19.73% stake in Indonesia’s PT Karunia Group, operator of the country’s leading resale platform Kick Avenue. 

In July, Kream agreed to purchase a 22.47% stake in Malaysia-based resale community operator Shake Hands for $1.7 million. 

Earlier this year, it invested 3.6 billion won into purchasing a 2.71% stake in Singapore’s Quista Technology Pte.

Kream will also seek to ramp up the synergy effect within Naver.

Two months ago, Naver announced it would purchase US-based fashion marketplace operator Poshmark for $1.6 billion, which is due to be completed next month. 

Naver pumped 50 billion won into Kream’s latest round of fundraising, which marks the first direct investment by the internet portal giant without going through its subsidiary Snow. 

Write to Han-Gyeol Seon at always@hankyung.com
Jee Abbey Lee edited this article.