Online grocery platform continues talks with underwriters, but valuation concerns and listing timeline remain uncertain
Online Korean grocery platform Kurly is reviving plans for an initial public offering as improving profitability and a partnership with Naver strengthen its valuation prospects, potentially opening an exit route for long-standing investors.
According to market sources Wednesday, Kurly has been holding regular discussions with its IPO underwriters — Korea Investment & Securities, NH Investment & Securities and JPMorgan — over a possible listing.
"We continue to hold regular meetings with our underwriters, but our focus remains on improving performance and enhancing our valuation," a Kurly official said.
The renewed IPO prospects follow a turnaround in earnings. Kurly posted revenue of 2.37 trillion won ($1.7 billion) and operating profit of 13.1 billion won last year, achieving its first annual operating profit since its founding.
Momentum has continued this year. In the first half, the company recorded revenue of 1.08 trillion won, operating profit of 51.6 billion won and net profit of 45.7 billion won. Its six-month operating profit was nearly four times its full-year figure for 2025, while it also swung to a net profit.
Kurly previously pursued an IPO after securing a valuation of around 4 trillion won in a 2021 pre-IPO funding round, but shelved the plan in 2023 amid deteriorating market conditions and a declining valuation.
Its partnership with Naver has since provided fresh support. In May, Naver invested 33 billion won through a third-party share allotment, valuing Kurly at approximately 2.8 trillion won — broadly in line with the valuation assigned by Anchor Equity Partners in 2023.
A potential IPO would also offer an exit opportunity for Kurly's long-standing financial investors, including Anchor Equity Partners, Hillhouse Capital, HongShan — formerly Sequoia Capital China — DST Global and Aspex Management.
These investors backed Kurly through successive funding rounds, with some having held stakes for more than five years. The delayed listing has prolonged their investment horizons, making Kurly's improving profitability and valuation particularly important to their eventual returns.
"Naver's investment can be seen as a pre-IPO round, helping restore confidence in Kurly's valuation and potentially improving exit prospects for existing investors," a Kurly investor said on condition of anonymity.
Kurly has also expanded its management structure, a move some market observers interpret as preparation for a public listing.
As of April 1, the company had 18 unregistered executives, according to its annual business report, reflecting a shift from its previously centralized leadership structure under CEO Sophie Kim toward more specialized management.
Market observers expect Kurly to seek a preliminary listing review by year-end, potentially paving the way for a market debut in the first half of 2027. The company has not confirmed a timetable.
Beyond its core grocery business, Kurly is expanding into fashion and cosmetics, targeting a 2.5-fold increase in fashion transaction volume this year.
"Previously, Kurly's case rested on revenue growth and the potential to expand its platform. This time, its improved earnings, logistics efficiency and business diversification are supporting a stronger profit structure," an investment banking official said.
"Its second-quarter and second-half results will be key, but recent trends look encouraging."
ch0221@heraldcorp.com