GS Retail Acquires Delivery App Yogiyo... "Aiming for No.1 in Quick Commerce" (Comprehensive)

Integration with Over 16,000 Offline Platforms... Achieving Fastest Delivery

[Asia Economy Reporter Lim Chun-han] GS Retail announced on the 13th that it has signed a contract to acquire 100% of the shares of Delivery Hero Korea LLC (DHK), which operates the delivery application (app) Yogiyo, through a consortium jointly formed with financial investors Affinity Equity Partners and Permira.

The final acquisition amount of the consortium is 800 billion KRW, of which GS Retail will invest 240 billion KRW, corresponding to a 30% stake. The consortium plans to immediately support DHK's business activities through a capital increase of 200 billion KRW simultaneously with the acquisition of existing shares, of which GS Retail will bear 60 billion KRW, making the total investment amount approximately 300 billion KRW.

This acquisition participation was made after reviewing various aspects including ▲Yogiyo's high market share and future growth potential ▲possibility of expanding synergy between online and offline commerce ▲DHK's stable financial structure ▲investment efficiency secured through joint participation with global private equity funds.

GS Retail plans to enhance its competitiveness in the quick commerce market through an urban micro-fulfillment system (the process from segmented orders to final delivery) combining over 16,000 retail stores such as GS25, GS The Fresh, Lalavla, and a network of more than 60 logistics centers. Through this, it is expected to rapidly rise to the position of the number one quick commerce operator, delivering the fastest service over the widest regional coverage. Additionally, it is anticipated to establish a foundation that can be linked to new businesses such as entering the food ingredient distribution market estimated at 70 trillion KRW and home meal replacement (HMR) subscription services.

GS Retail plans to complete the payment of the sale price within this year and finalize organizational restructuring and detailed business strategy formulation to complete visible business application of quick commerce within the year.

A GS Retail official said, “This acquisition strengthens our quick commerce business capabilities, creating an opportunity for a quantum jump by connecting over 16,000 offline platforms with online customers,” adding, “In addition to creating synergy using our existing capabilities, we will actively seek opportunities to develop various new businesses.”

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