Another 130 billion won investment! Korean online fashion platform Musinsa is booming

According to Korean media reports, South Korean online fashion platform Musinsa received an additional investment of 130 billion won from Sequoia Capital and IMM Investment respectively .

This is the first time Musinsa has introduced a follow-up investment project in 1 year and 3 months since November 2019. Musinsa also received recognition of its corporate value of approximately 2.5 trillion won through this investment .

In today's new e-commerce market in South Korea, although various platforms are developing rapidly and transaction volumes are constantly breaking records, nine out of ten e-commerce companies are facing operating losses. However, online fashion platform Musinsa is an exception.

Last year, Musinsa achieved very ideal results, with a transaction volume of 1.4 trillion won and an operating profit of over 50 billion won . As Korea's leading online fashion platform, Musinsa is also one of the few e- commerce platforms in Korea that has achieved trillions of won in transactions and maintained a surplus , with an operating profit margin of over 20%.

As a company that has grown from a simple online fashion community to a leading online fashion commerce company, Musinsa's market influence is also growing rapidly. Especially last year, when the entire fashion industry was developing in the opposite direction due to the epidemic, Musinsa continued to improve its profitability through stable business operations.

This investment attraction can be said to be the result of Musinsa's continued rapid growth as a Korean online fashion platform exceeding 1 trillion in transaction volume for the first time.

In addition, it has been highly praised by the Korean industry for its promotion of new businesses such as the limited edition market, luxury goods, and women's fashion, as well as the possibility of expansion due to the diversification of business models.

The head of Musinsa said: "In the future, Musinsa plans to invest in expanding new product categories, expanding logistics systems, and expanding its brand's overseas business to enhance the competitiveness of the platform. In addition, it plans to expand initial investment to cultivate new brands."

However, as a vertical e-commerce platform, although Musinsa has a certain leading advantage, it still faces fierce competition from similar fashion e-commerce platforms such as Zigzag and Trenbe. Therefore, the future development of Musinsa is not so easy.

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