The number of users increased by 47.8%! South Korea's TMON successfully received 305 billion won in investment

South Korean e-commerce platform TMON has successfully attracted 305 billion won ( US$276 million ) in investment, putting its plans for an initial public offering (IPO) on the local stock exchange in the second half of this year back on track, according to Korean media reports .

But the company faces a tough task in convincing investors of its future sales growth and profitability after lagging behind rivals such as Coupang and Naver .

According to the investigation, the company had already suffered serious losses in 2019, with total liabilities of 658.1 billion won. In order to cope with the continuous losses, the company's business scale was reduced , resulting in a decline in sales. As of 2020, its annual sales fell by 17% to 286.4 billion won.

It is understood that in March last year , TMON achieved its first operating profit since its establishment 10 years ago .

An industry insider said, "Given TMON's deteriorating financial situation, it is not easy for TMON to seek an IPO this year."

TMON believes that through continuous special discount activities it can attract new online membership customers and become more competitive than its peers.

A TMON insider said: "We are launching new specials all the time, so we have attracted many new customers and made old customers revisit our platform. The number of newly registered customers has also increased by 47.8% compared to last year."

TMON aims to go public this year , with the local stock exchange suggesting the e-commerce company first improve its financial situation. Fortunately, it received 255 billion won in funding from a consortium led by Seoul-based private equity firm PSA Alliance .

If TMON is listed on Kosdaq this year , it will use the funds raised from the IPO to invest in marketing and logistics.

TMON is also expected to benefit from Coupang’s planned IPO next month .

Coupang's company value is estimated at 55 trillion won. TMON CEO Lee Jin-won said earlier that his company's recent investment will help offset losses and will be used for the IPO process in the second half of the year .

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