Danggeun Market (Karrot), the publisher of South Korea’s local super app ‘Karrot’, achieved record-high revenue and its first turnaround since its establishment. Danggeun Market’s accomplishments are impressive, especially considering they were achieved during a global economic downturn. The company plans to increase investment in technology advancement and global market expansion based on these achievements. (The word “Danggeun” stands for carrot in Korean and is also short for “in your neighborhood.”)
Danggeun Market was established in 2015 by Gary Kim and Paul Kim as a second-hand transactions platform limited to specific local areas in Korea. Danggeun Market expanded its services nationwide in 2018, connecting buyers and sellers within the same neighborhood, and has since experienced significant annual growth. The company now provides users with various community-based experiences in addition to second-hand trading in Korea.
Danggeun Market transformed into a multi-billion dollar tech unicorn in 2021, raising USD $162 million in total investments and achieving a USD $2.7 billion valuation through four fundraising rounds with investors such as DST Global, Goodwater Capital, Altos Ventures, Softbank Ventures Asia, and Aspex Management. Danggeun Market’s four successful investment rounds showcase its status as one of Korea’s most innovative and rapidly growing companies.
Danggeun Market’s growth rate also can be explained by the numbers. With 36 million cumulative subscribers and nearly 19 million monthly active users (MAU), the company’s full-year 2023 revenue increased by 156% year-on-year to KRW 127.6 billion (USD 94.5 million), which is more than 10 times higher than the KRW 11.8 billion (USD 8.7 million) recorded in 2020. Danggeun Market achieved its first annual surplus since its establishment in 2015, with an operating profit of KRW 17.3 billion (USD 12.8 million) in 2023. (Non-consolidated based, KRW/USD exchange rate :1,350)
Based on this solid growth, Danggeun Market plans to increase its investment to become the first successful Korean unicorn company in the global market. Danggeun Market executed its first global market expansion with the launch of Karrot in the UK in November 2019 and now operates in over 560 regions across four countries, including Canada, the United States, and Japan. Gary Kim, co-founder of Danggeun Market, moved to Canada in 2022 to support Karrot’s continued growth across major global markets. In June 2022, Karrot appointed Robert Kim, a Canadian technology leader and well-respected entrepreneur, as the new CEO of Karrot North America to speed up service localization.
The growth rate of Karrot in Canada is impressive. In Canada, Karrot’s performance indicators such as MAUs, cumulative registered subscribers, and monthly posts, all tripled year-over-year. Karrot also ranked in the top 10 for free social apps on both Google Play Store and Apple App Store on March 19, 2024.
Karrot is currently limited to a second-hand marketplace app, but the company plans to accelerate global investment to replicate its success in Korea and expand its service area. Danggeun Market's Co-CEO, Gary Kim stated that Danggeun Market will keep investing in its global business to expand hyperlocal community services worldwide. The company aims to reposition Karrot as a local super app, transitioning from a peer-to-peer based second-hand trading platform to a focus on neighborhoods and local regions.