Seoul, South Korea—JeongYookGak, a South Korean direct-to-consumer (D2C) food tech startup, has raised $7.4 million (KRW 10 billion) in a funding round led by NH Investment & Securities.
Atinum Investment and Capstone Partners participated in the funding round. The post-money valuation is not disclosed to the public.
The company plans to use the fresh capital to fund its operations and those of its subsidiary, Green Village, and to accelerate its turnaround strategy.
Over the past year, the startup has focused on strengthening its internal structure and improving performance, resulting in an 85% reduction in monthly operating losses by the end of last year compared to the period before the acquisition of Green Village.
JeongYookGak has also expanded its product line by launching more than 40 new private label (PB) products in line with its Ultra Fresh identity.
Its subsidiary, Green Village, has introduced same-day and early-morning delivery services and revamped its app with AI technology to improve shopping accessibility.
The company has also focused on improving profitability by strengthening its fundamentals and differentiating its private label product strategy, resulting in a 22% year-over-year increase in sales per franchisee store in January and February.
A JeongYookGak stated that the investment provides a solid foundation for resolving financial issues and accelerating synergistic performance. Both companies are expected to achieve profitability as early as the first half of this year.
