Kakao Raises $90 Million in Private Coin Offering to Launch Its Blockchain Platform

Kakao Raises $90 Million in Private Coin Offering to Launch Its Blockchain Platform

 

Ground X, a blockchain affiliate company of the South Korean messaging giant Kakao, successfully completed a private coin offering, Bloomberg reports. The company managed to raise $90 million, while the plans to raise a “similar sum” are in place to take off today as well.

KakaoTalk, also known as KaTalk, is an online messaging app, operated by Kakao corporation. The app has more than 40 million active users on a monthly basis, while the total number of registered users is estimated at more than 220 million.

Exactly one year ago, Kakao announced plans to integrate the blockchain technology in its business.

“Kakao is considering the launch of a wholly-owned subsidiary that will focus on developing blockchain applications,” it was reported in the local newspapers. A couple of weeks later, Kakao held a press conference to launch the Ground X subsidiary.

“Now at Kakao 3.0, we will continue to explore our growth potential by seamlessly integrating services among Kakao companies and actively building presence in the global market,” said Joh Su-yong, co-CEO of Kakao.

According to the latest report published in Bloomberg, Ground X has partnered with 26 other companies to run apps on its blockchain network,  which is called Klaytn.

One of Kakao’s partners, a game developer company Wemade, said that Kakao is considering adding one of its own services to the platform.

“There’s going to be a wide spectrum of services […] we’re continuing to have conversations with Kakao,” said Jason Han, the CEO of Ground X.

Kakao completed a post-IPO equity, a funding round which  takes place when firms invest in a company after the company has already gone public, in 2011 to collect $20 million. The same rounds were completed back in 2014 and 2017. The final, and the biggest post-IPO equity, was held in January 2018 when Kakao raised around $1 billion.

The total estimate raised by Kakao for its business is set at $1.5 billion, by Crunchbase.