Timon Secures 400 Billion KRW Investment from Domestic Private Equity Fund

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E-commerce company TMON is set to secure an investment worth 400 billion KRW. According to industry sources on the 3rd, TMON is pursuing a 400 billion KRW investment from the domestic private equity firm PS Alliance. PS Alliance is acquiring exchangeable bonds issued by the current largest shareholder of TMON, the global private equity firm Kohlberg Kravis Roberts (KKR), and Anchor Equity Partners.

TMON entered the initial public offering (IPO) process in April, with Mirae Asset Daewoo acting as the lead underwriter. To resolve capital erosion, TMON has also been pushing for a 300 billion KRW rights offering. With this investment, TMON will be able to overcome capital erosion, and since the exchangeable bonds can later be fully converted into equity, it is expected to greatly help improve the financial structure. The IPO preparation work is also expected to accelerate.

Since last year, TMON has focused on improving its profit structure. The driving force behind TMON’s ability to improve its profit structure is its "time commerce" strategy. By offering products at special prices for a limited time, sellers can sell large quantities in a short period, and consumers develop the perception that by browsing TMON, they can purchase products at exceptional prices. Operating this 24 hours a day, TMON has continuously developed time-limited stores such as "10-minute Attack" and "100-second Attack." According to TMON, as of the fourth quarter of last year when time commerce was fully launched, the number of partners participating in special deals at the time-limited stores increased by 42.4% compared to the first to third quarters, and among them, partners generating sales exceeding 100 million KRW also increased by 16% during the same period. Based on this, TMON recorded its first monthly profit in March this year and is targeting an annual profit as well.

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