AI tech firm Interminds to attract up to $12 mn in Series C

South Korean startup Interminds Co., an AI developer of unmanned convenience store operations, aims to attract 10 billion won to 15 billion won ($7.8 million-$11.7 million) in a Series C funding round, according to investment banking sources on Thursday.

The startup will sell redeemable convertible preferred shares (RCPS), which give holders the option to convert preferred stocks to common shares, or exchange the shares for cash after a specified call date. The company has tapped Seoul-based accounting firm Samjong KPMG as the lead manager of the funding round.

The AI tech firm, which was valued at 37 billion won in a Series B round last June, is looking at about 50 billion won valuation in the next funding round.

Founded in August 2016, Interminds is one of Korea's leading developers of vision AI, which is being applied to self-driving vehicles and smart factories, among others, by recognizing and analyzing movements from video footage. 

The startup is using vision AI for door pops at unmanned convenience stores. Door pops are vending machines that detect which products a customer takes, and processes the payment for it. The machine is being used in about 100 convenience stores, hotels and campgrounds across Korea.

The tech firm has drawn investor attention for its business model similar to Amazon Go’s. The convenience store chain run by US e-commerce juggernaut Amazon allows customers to purchase products without checking out at a cashier or using a self-checkout station. Interminds is the only Korean firm to use this automated checkout model to date.

The startup has received more than 5 billion won from Korean retail giant Shinsegae Group's affiliates and venture capital firms.

The startup’s CEO Kim Jong-jin is its largest shareholder with 25.1% ownership, followed by Stonebridge Ventures, which holds 14.4%, and retail tech firm Shinsegae I&C with 7%. Korean VC firm STIC Ventures and tobacco maker KT&G Corp. each own 5.4%; Samsung Securities Co. and Shinsegae’s supermarket chain E-Mart Inc. hold 5.4% and 3.5%, respectively.

Write to Ji-Eun Ha at hazzys@hankyung.com
Jihyun Kim edited this article.