Kakao Enterprise exceeds $920 mn in enterprise value

South Korea-based Kakao Enterprise has topped 1 trillion won ($921.5 million) in enterprise value, just a year after its inception in 2019, following the $92 million raised from Korea Development Bank (KDB). 

Kakao Enterprise, an artificial intelligence technology developer, announced on Jan. 6 that it issued around 1.37 million new shares to the state-run bank. It is KDB's largest scale-up investment to date.

Shares were priced at 73,176 won ($67) apiece, raising the company's enterprise value to around 1.1 trillion won. 

The latest capital increase will make KDB the second-largest shareholder of Kakao Enterprise with an 8.83% stake. Kakao Corp., the country's leading messaging app operator, remains the largest shareholder with an 87.43% stake.

Kakao Enterprise plans to use the proceeds to solidify its leading position in the country's IT service market and drive digital transformation. The company will invest in its core operations, including Kakao Work and Kakao i Cloud, alongside shoring up technology investments to tap into new businesses.

Kakao now operates seven subsidiaries with an enterprise value of over 1 trillion won. 

Founded in 2019, Kakao Enterprise offers AI, cloud, data analysis and digital transformation-related operations. It provides AI platform services to enterprises including AI engine, messenger platform, data service platform, and cloud services.

Over the past year, the company has provided digital transformation services for around 16 companies, including the Korea Intellectual Property Office, NH Investment & Securities, Kyobo Life Insurance and Korea Broadcasting System.

Last September, the company unveiled Kakao Work, an enterprise messenger program, which pulled in 100,000 new accounts in just three months.

Going forward, Kakao Enterprise also plans to unveil its new cloud platform, Kakao i Cloud, during the first half of this year.



Write to Jin-sung Kim at jskim1028@hankyung.com
Danbee Lee edited this article.