South Korean car-sharing platform Socar has reached unicorn status, with a valuation of $1.1 billion, after raising $53 million from Songhyun Investment and SG Private Equity.
Founded in 2011, the platform has grown to serve six million users with a fleet of 12,000 vehicles.
Despite reaching $220 million in revenue last year, the company reported an operating loss of $60 million.
Socar has been exploring new revenue streams to increase profitability and has launched several services.
However, due to government regulations, its alternative taxi service, TADA BASIC, was suspended in April.
Meanwhile, the company operates Socar Business, a dedicated service for 24,000 companies.
Recently, Socar has shown interest in entering the used car market, registering the brand name "Casting" in August 2020.
In addition, the company plans to enter the "Proxy Driver Call" business in the fourth quarter of 2020, a service that allows users to call a proxy driver when they have consumed alcohol.
The market for Proxy Driver calls is estimated to be approximately $2.5 billion.
Although there is no indication of an imminent IPO, Socar will use the newly attracted investment to expand its mobility business, enter the used car market and explore other business opportunities.
A source within the company confirmed that they are in talks with investors for an additional $42 million investment, which would take the post-money valuation to over $1 trillion if the deal is finalized.
