Kakao-invested game developer Shiftup becomes unicorn startup

Shiftup Co., a South Korean mobile game developer, has joined the ranks of unicorns, or private companies worth $1 billion or more.

The studio behind the popular mobile game Destiny Child recently sold part of its shares owned by its executives and employees to two Korea-based venture capital firms, IMM Investment Corp. and Smilegate Investment Inc.

During the stake sale process, Shiftup’s enterprise value was estimated in the 1 trillion won, or $1 billion, range, making it a unicorn startup, according to industry officials on Sunday.

The company’s rise to unicorn status comes after Npixel Co., another Korean mobile game developer, became a $1 billion startup in August of last year.

Shiftup’s corporate value has risen fivefold since September 2020 when the company sold a 7% stake to Line Corp.’s Line Friends, which was later renamed IPX. Back then, Shiftup was valued at 200 billion won.

The operator of an all-in-one game design and development studio intended to develop story-driven interactive video games, Shiftup deals with original illustrations and programming skills, enabling developers to avail themselves of all realms of game-making from game production to promotional video and music production.

FOUNDER KIM HYUNG-TAE, FAMOUS ARTIST

The company was established in 2013 by founder and CEO Kim Hyung-tae, who previously worked at Softmax Co., which changed its name to ESA Co., and NCSOFT Corp.

Kim, a famous game artist, is renowned for his character design in the Magna Carta series and in Blade & Souls.

Shiftup was known to the mobile game industry in 2016 when it joined hands with Line Games to launch Destiny Child, a role-playing game (RPG).

Destiny Child ranked first in terms of sales on Google Play Store and the Apple App Store that year, when Kakao Corp. also invested in Shiftup.

Shiftup plans to launch a shooting mobile game, Goddess of Victory: NIKKE, by the end of this year.

Eventually, the company also plans to list its shares on the Korea Exchange via an initial public offering, industry watchers said.

Shiftup posted 19.1 billion won in operating losses on sales of 17.2 billion won in 2021.

Write to Jong-Woo Kim at jongwoo@hankyung.com
In-Soo Nam edited this article.