Woowa Brothers, operator of Baedal Minjok, reported revenue of US$453.9 million for 2019, 80% increase compared to US$252 million the previous year. Its top line grew 11 times from US$39.7 million in 2015.
The company posted operating loss of US$29.1 million after 3 consecutive years of operating profit from 2016. Increased expenses on advertisement, marketing and rider promotion to fight off competitors resulted in operating loss.
Baedal Minjok’s gross merchandise volume (GMV) hit US$6.9 billion last year, 8-fold growth from US$803.5 million in 2015. GMV is commonly tracked metric by e-commerce companies that measures total sales dollar value of goods sold on their platforms.
Delivery Hero, headquartered in Berlin, announced in Dec 2019 that it will take control of Woowa Brothers at a US$4 billion valuation. As part of the deal, Woowa Brothers and Delivery Hero will set up a joint venture in Singapore to manage Asian operations. Delivery Hero operates a popular food delivery platform Foodpanda in Singapore and owns controlling stakes in Yogiyo and Baedaltong in Korea.