SK Square injects $29.5 million into agriculture startup

Korean investment firm SK Square Co. Ltd. has invested approximately 35 billion won ($29.5 million) into homegrown agriculture tech startup Greelnabs. 

Monday’s announcement comes a month after the SK Telecom Co., Ltd. spin-off announced a 100 billion won investment into a blockchain and metaverse firm.

SK Square focuses on investment into companies in the information and communication technology sector.

The company said it hopes the latest investment will open the door for collaborations between SK affiliates and Greenlabs in the agtech industry.

Greenlabs’ valuation is estimated to be between 700 and 800 billion won, meaning SK Square now has a four to five percent stake in the startup. 

Founded in 2017, Greenlabs provides data-driven information to farmers with the aim of maximizing users’ margins. This year’s revenue stands at around 100 billion won. Greenlabs’ main product, Farm Morning, is an app that enables crop growth monitoring, remote control of the farm environment, and more.

Some 450,000 farming households use the app, approximately half of all such households in Korea. 

In terms of collaborations, SK Square’s affiliate Eleven Street Co., Ltd. an e-commerce platform, will utilize Greenlab’s distribution network. The conglomerate also plans to grow its ESG businesses by tapping into the startup’s certified emissions reduction service. 

SK Square said Greenlabs is on the verge of becoming a unicorn. As the agtech company’s revenue, trade volume, and the number of subscribers directly reflect its valuation, the conglomerate forecasts an increasing stake with the startup's expansion.

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