With over 10 million users, Karrot becomes the fastest growing second-hand trading app in Korea

Under the " influence " of the COVID-19 pandemic , South Korea 's e-commerce industry has achieved rapid development in 2020. In addition to conventional online shopping transactions, another online transaction method in South Korea has also been strongly promoted , that is , online transactions of second-hand goods .

One of the most popular online trading platforms for second-hand goods is Karrot , developed by South Korean startup Danggeun Market Inc. , which saw explosive growth in both user base and transaction volume in 2020 .

Since its launch, Karrot has experienced explosive growth, with an average of more than 8 million users per month , and by September 2020 it had exceeded 10 million, becoming the most downloaded application in South Korea in the second half of 2020 , quickly rivaling Coupang , South Korea's number one e-commerce platform with 13 million users .

Danggeum Market Inc. launched Karrot in 2015 as a second-hand trading platform specifically for IT workers in Pangyo Tech Valley. But soon, its services were expanded, and by January 2018, it had become more of a community trading platform that encouraged community sales.

As the income of Koreans has been affected by the epidemic, many Koreans have begun to "consume wisely" . The emergence of this new consumer culture means that more consumers are looking for second-hand goods with good quality and low prices . In addition, due to the impact of the new crown epidemic, offline flea markets have been closed , so Karrot has become the first choice for Koreans.

These changes have fueled Karrot ’s growth , making it South Korea’s largest second-hand marketplace and the second-largest e-commerce company after Coupang .

Last year , Karrot completed a $33 million Series C round of financing, which was led by Goodwater Capital and Altos Ventures, with participation from Kakao Ventures and SoftBank Investment.

Currently, more than 300,000 new products are registered on the Karrot app in Danggeun Market every day . Consumers can find microwave ovens , furniture , electronics , games , and even food on Karrot , but the Karrot App does not support financial transactions.

Karrot founder Gary Kim said Karrot plans to raise up to 100 billion won ($90 million) this summer, which could value the company at $1 billion.

South Korea

Second-hand transactions

Karrot