KOSDAQ-listed company FSN's subsidiary, Boosters, announced that it has completed a KRW 20 billion RCPS (Redeemable Convertible Preferred Stock) investment from SBI Investment.

Boosters stated that it is in the final stages of additional investment discussions with several institutions within the same round and aims to achieve a post-money valuation of KRW 200 billion upon the completion of this round.

Upon completion of this investment round, Boosters will have doubled its corporate value in less than a year, following a total investment of KRW 10.4 billion in January, which pushed its valuation past KRW 100 billion.

Boosters plans to actively utilize the secured investment funds for the growth of existing partners, additional partnerships, and the brands slated for investment. Boosters aims to evolve into a company that expands the global K-brand ecosystem beyond merely providing marketing and commerce capabilities, with a target of reaching a corporate value of KRW 1 trillion within the next three years.

Boosters plans to target the rapidly growing K-beauty market as a core focus, alongside the global expansion of existing partners. With experience in exclusive sales and collaboration with K-beauty brands, including Dermaile, Boosters is expected to quickly establish its presence in the global beauty market.

Boosters has innovated the traditional advertising agency model by collaborating with high-growth potential brands, jointly investing in the marketing sector, and sharing the resulting profits. It also pursues co-growth by sharing performance and risks through equity investments in companies requiring financial investment.

In its first year of establishment in 2019, Boosters' annual revenue was only KRW 200 million, but this year it achieved a cumulative consolidated revenue of KRW 168.9 billion and an operating profit of KRW 30.5 billion by October, setting a new annual record early. Additionally, on a separate basis, including the platform business in which it holds a 100% stake, it is achieving approximately KRW 4.8 billion in separate operating profit.

If Boosters completes this investment round as announced, it will achieve a corporate value of KRW 200 billion within six years of its founding. Based on this, it aims to become a 'global K-brand builder' through the discovery of promising brands, expansion of equity investments, global distribution network expansion, and platform enhancement, with a goal of achieving a corporate value of KRW 1 trillion within the next three years.

FSN, the parent company, is also expected to benefit positively from Boosters' growth momentum. Based on Boosters' strong performance, FSN recorded its highest-ever results as of the third quarter, with a net income attributable to controlling shareholders of KRW 5.9 billion. FSN plans to actively invest in new businesses based on the increased asset value and cash liquidity of its subsidiary.

Seo Jeong-gyo, CEO of FSN, stated, "With this investment attraction, Boosters will take another step towards the challenging goal of achieving a corporate value of KRW 1 trillion within three years. FSN will also strengthen its asset value and liquidity at the group level to actively pursue investments to secure new growth drivers."

Popular News