ABLY secures $2.16 bn valuation, joins list of Korea’s top unicorns

(ABLY)

ABLY Corporation, the operator behind women’s fashion platform ABLY, is emerging as a unicorn startup with a valuation of 3 trillion won ($2.16 billion), securing significant investment despite a challenging environment for platform companies. The company, founded in 2018 by Watcha co-founder Kang Seok-hoon, also operates the men’s fashion platform 4910 and the Japanese fashion mall Amood.

Kang announced on Monday that ABLY had raised 1 trillion won in investment from Alibaba Group, adding, “This investment reaffirms the business performance and growth potential of ABLY.”

With this funding, ABLY has become the fifth highest-valued South Korean startup to receive global investment. The top four spots are held by Dunamu (over 10 trillion won), Yanolja (9 trillion won), Toss (6-8 trillion won), and Musinsa (3.5 trillion won). ABLY is currently in fifth place alongside Danggeun Market.

During the funding round, Alibaba recognized ABLY Corporation’s enterprise value at 3 trillion won for new shares and 1.2 trillion won for existing shares. This marks Alibaba’s first investment in a Korean platform company, a move industry experts interpret as a strategic step to expand its influence in the country’s e-commerce market.

Alibaba’s decision to back ABLY stems from the platform’s extraordinary growth trajectory. While competitors like Musinsa, ZIGZAG, 29CM, and Hago operate in the same market, ABLY has outpaced its peers in growth. According to WiseApp, Retail, and Goods, ABLY recorded 8.79 million monthly active users (MAUs) as of October 2024, surpassing Musinsa (7.68 million) and Olive Young (6.44 million). ABLY is now the third most-used mobile shopping app in Korea behind Coupang (32.03 million) and AliExpress (9.04 million).

Transaction volumes have also risen sharply. From 700 billion won in 2021, ABLY’s annual transaction volume is projected to reach 2 trillion won this year. Notably, the company turned a profit in 2023 - the only fashion platform to do so - posting annual revenues of 259.5 billion won and operating profits of 3.3 billion won, marking its first profitable year since it was founded. The 2024 revenue is expected to grow by approximately 40 percent year-over-year to 350 billion won.

ABLY’s rapid ascent can be attributed to its aggressive expansion beyond women’s fashion into categories such as beauty, digital products, and lifestyle goods, positioning itself as a comprehensive lifestyle platform. Responding to a growing trend of consumers seeking popular bakery brands such as “London Bagel Museum,” for example, ABLY launched an online category for bakery products in April 2024. The company also introduced webtoon and web novel services to strengthen its role as a content portal.

ABLY has also leveraged its proprietary artificial intelligence (AI) technology to enhance user experiences. Its personalized AI recommendation algorithm analyzes individual preferences to suggest tailored products, contributing significantly to the platform’s transaction growth.

The company also plans to raise an additional 200 billion won through global joint investments and expand its international presence, while also aiming to support small Korean businesses in entering overseas markets via its platform.