Bunjang Secures $29M in Series E, Valuation Soars to $362.5M

Seoul, South Korea - Bunjang Corp, a South Korean online marketplace for secondhand goods, has secured KRW 40 billion ($29 million) in a Series E funding round led by Hana Alternative Asset Management.

The latest funding values Bunjang at approximately KRW 500 billion ($362.5 million), up from KRW 340 billion in its previous funding round in November 2021.

Bunjang reported that its platform-based revenue grew by over 50% year over year in 2022, driven by the success of its paid services, including "Bunjang Care," a product authenticity verification service, and "Bunjang Pay," a secure payment service.

The company's "Bunjang Care" service, launched in December 2022, has seen strong adoption among younger users. 

In the first quarter of 2022, 37% of Bunjang Care users were in their 20s. 

By the first quarter of 2023, the service saw a demographic shift, with users in their 30s accounting for 43% of total users, indicating growing popularity among a slightly older demographic.

Bunjang primarily caters to users in their 20s and 30s, reflecting the platform's appeal to millennials and Generation Z. 

The company expects its revenue to more than double this year compared to the previous year and projects a shift to operating profit.

"We are continuously introducing new services to facilitate convenient secondhand trading experiences for our customers," said Jaehwa Choi, CEO of Bunjang. 

The company plans to enhance its service usability and security while continuing to develop a technology-based platform for secondhand transactions.

In June, Bunjang expanded its offerings by launching an "overseas tab" in collaboration with Mercari, Japan's largest secondhand trading platform. 

This tab allows for cross-border transactions.