South Korea-based luxury goods startup Kream has received $61 million in debt from its parent company sneaker resale app Snow to bolster its acquisition spree and stand as an independent entity with a potential IPO plan, according to industry members.
Kream, which began its operation in March 2020, borrowed ₩77 billion ($60.4 million), including ₩50 billion ($39.2 million) this year, from Snow, a subsidiary of South Korean Internet conglomerate Naver, according to TechM report.
The funds are being used to support the company’s ambition to expand regionally. Kream has already taken stakes in marketplaces across Asia.
Last month, it acquired 70% stake in a luxury trading marketplace and 41% stake in vintage fashion trading site Collectiv.kr. It also spent ₩8 billion to take over sneaker resale site Nike-mania.co.kr.
Beyond South Korea, Kream invested ₩36 billion in Japan-based SODA, which owns online sneaker resale site SNKRDUNK, which gives it an indirect access to China, Singapore, Hong Kong and Indonesia. It also invested in a Thailand-based resale business.
Kream’s growth-oriented investments last year led to an operating loss of ₩59.5 billion. While the specific date of its IPO was not disclosed, Naver’s CFO Kim Nam-sun explained the IPO strategies of its major affiliates in a conference call, reported by ChosunBiz.