Boosters, Korean Brand Aggregator, Raises USD 10 Million as Its First Investment Since Founding
Expanding into the aggregator business after brand acquisition; will offer exit strategy to small and medium-sized Korean brands that experience limits in operational funding
The Korean brand aggregator group, Boosters (co-CEO Wanhee Shin and Yoonho Choi), announced in January that it had completed a series A round investment worth USD 10 million. Korean venture capitals such as S&S Investment, Base Investment, Korea Omega Investment Finance, DS Asset Management, and Europe and North America’s Partech Partners and Tekton Ventures participated in this investment.
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Founded in 2019, Boosters has a team of experts with sales expertise in the ‘Direct to Consumer (D2C)’ field, growing in popularity in the e-commerce industry. After the acquisition, the company plans to achieve rapid brand growth through multi-channel marketing and influencer promotion on social networks, its core competencies. Boosters will use the fund raised in this investment round to take over small and medium-sized Korean brands that have business potential but are having difficulties in marketing and inventory management to take the next step.
Acquisitions usually take the form of transferring or acquiring the operation authority of the brand. Making an acquisition proposal, running accounting due diligence, setting the price of the brand for sale, and final contracting take about four weeks. A business that acquires several promising brands from the market based on financial affluence and makes a profit by nurturing these brands is called a brand aggregator. Such a business model has already proven its explosive growth potential worldwide.
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Boosters’ co-CEOs Wanhee Shin and Yoonho Choi said, “We thank all our investors who have recognized our commerce expertise to invest. We will enable exit strategy for small, medium-sized enterprises with great products/services to overcome growth restrictions faced by marketing and operational management and will make it our most important mission to improve brand values to create a win-win structure between the enterprises and Boosters.”
Launched in July 2019, Boosters is a Korean e-commerce startup that has grown more than 30% annually through joint promotion efforts with social network influencers and product launch initiatives. It has achieved USD 23 million in accumulated sales.
