VC Funding Pours into Specialized Precision Chemical Material Expert Progreen Tech

Series C Round Secures 36.2 Billion Investment... Company Valued at 126.6 Billion
Surpasses Target Amount, Secures Various Financial Investors

Specialty precision chemical material manufacturer Progreen Tech has secured 36.2 billion KRW in Series C funding. This large-scale capital injection amid an investment winter is seen as proof of the company's growth potential.

According to the investment banking (IB) industry on the 26th, Progreen Tech recently completed its Series C funding round. This round included new shareholders such as BTC Investment, HB Investment, BNH Investment, Innopolis Partners, BA Partners, Kingo Investment Partners, E& Investment, Pio Investment, Square Ventures, and IBK Industrial Bank, as well as many existing shareholders including Company K Partners, Komes Investment, K& Investment Partners, and Hyundai Technology Investment. To date, Progreen Tech has raised a total of 48.4 billion KRW in cumulative investments, with a post-investment valuation of 126.6 billion KRW.

Despite the investment winter caused by tightening capital markets and recession concerns, Progreen Tech secured 36.2 billion KRW, exceeding its target of 30 billion KRW by 6.2 billion KRW. The key to this successful fundraising is analyzed to be the investors’ interest drawn by the stability of existing businesses and the validity of the new secondary battery business strategy based on differentiated technology.

Progreen Tech, specializing in manufacturing specialty precision chemical products such as pharmaceutical raw materials, cosmetic additives, and specialty paper dyes, surpassed 40 billion KRW in sales last year. On the profitability front, it recorded an operating profit of 3.4 billion KRW, marking a successful turnaround.

Selecting LiPF6, a core material for secondary battery electrolytes, as a new business in the promising future industry, Progreen Tech has also started constructing its second plant in Gunsan with a production capacity (CAPA) of 5,000 tons. Notably, last year it completed a business agreement with a domestic electrolyte company, strengthening supply chain management (SCM) with the three major domestic secondary battery companies.

Kim Daeyoung, CEO of Progreen Tech, said, “We are pleased that despite the difficult investment market, the company’s growth potential and future value have been recognized by reputable new investors along with follow-up investments from existing shareholders. We will utilize the funds raised to respond to the surging demand for secondary batteries and accelerate the electrolyte new business to help domestic electrolyte companies smoothly cope with the implementation of the U.S. Inflation Reduction Act (IRA), an area where domestic infrastructure has been relatively lacking.”

Progreen Tech selected Korea Investment & Securities as the lead underwriter for its KOSDAQ listing last year. It has begun preparations for an initial public offering (IPO) targeting the second half of 2024 or the first half of 2025. The company has already proceeded with listing tasks such as transitioning to International Financial Reporting Standards (IFRS), establishing an internal accounting management system, and due diligence by the underwriter.

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