The Mamma Reports Operating Revenue of 61 Billion KRW in First Half... "Nearly Reaching Last Year's Sales in Just Six Months"

[Asia Economy Reporter Hyunseok Yoo] TheMamma announced on the 27th that its sales in the first half of this year reached 61 billion KRW, a 127.2% increase compared to 26.8 billion KRW in the first half of last year.

This level is close to last year's annual sales of 66.2 billion KRW. The company explained that rapid growth in scale continued this year as both franchise store sales commission revenue generated through TheMamma's main platform, the ‘MammaMeokja’ app, and direct-operated mart sales increased.

TheMamma's sales surged from 1.1 billion KRW in 2018 to 18.4 billion KRW in 2019, about 17 times growth, and then increased about fourfold again to 66.2 billion KRW in 2020.

The order amount on TheMamma's main platform, the MammaMeokja app, in the first half of this year was recorded as a 247.9% increase compared to the same period last year. Not only the order amount but also the number of orders increased by 238.6% compared to the previous year.

During the same period, the purchase amount per order per customer increased by 2.47%. The average monthly active users in the first half of the year increased by 283.8% compared to the previous year. The number of new app downloads increased by 115.6%. The customer revisit rate consistently remained in the 20% range.

The company analyzed that the app sales rapidly increased as brand awareness naturally rose over about a year after the app upgrade. The impact of ‘COVID-19’ also led to a solidified consumption style through e-commerce, causing a surge in demand for purchasing food ingredients via the app.

TheMamma has set a goal to record annual sales of 255 billion KRW this year. Through launching and activating new apps, expanding business-to-business (B2B) transactions, and selling electronic shelf labels (ESL) to franchise stores, the company plans to further increase sales growth in the second half of the year. Strategies for additional direct store openings and franchise expansion are also being concretized.

A representative of TheMamma said, “As the MammaMeokja app becomes more active, the sales of franchise local marts also increase together, leading to mutual growth of the company and local communities,” adding, “In the second half of the year, the company’s growth will accelerate based on a more diversified business portfolio.”

TheMamma is a distribution IT company established in 2016. It operates the neighborhood mart shopping O2O (Online to Offline) app MammaMeokja by partnering with local food ingredient marts and runs direct-operated marts in major cities. The company also develops and commercializes IT technologies necessary for mart operations.

So far, it has attracted a cumulative investment of 20.3 billion KRW. In July last year, it was selected as a preliminary unicorn by the Small and Medium Business Corporation and received funding of about 7 billion KRW. The goal is to attract a Series C investment of 100 billion KRW scale in the second half of this year and to be listed on KOSDAQ next year.

This content was produced with the assistance of AI translation services.