Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Korea M&A Recap in 2021 - A Leapfrog Year

Launch Of Unlisted Korean Companies ETFs in 2023 & How Our Smartkarma Research Would Change

Yanolja: Largest Travel App in Korea & Second Largest Property Management SaaS Provider Globally

Yanolja Unicorn Gets Ready for an IPO in Korea - "Love Hotel" App Goes Mainstream

Ctrip Update and Prelude to In-Depth Bottoms up Analysis / Evaluation of Business Model

Airbnb IPO Preview - "It Is All About Trust"

Airbnb Pre-IPO – Travelling Down an Actual Path to Profitability

Private Capital Markets

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<p>In this insight, we provide further details of Yanolja which has become the second largest investment for Softbank in Korea, after Coupang. In July 2021, Softbank Group Corp's Vision Fund II agreed to invest $1.7 billion in <a href="https://www.bloomberg.com/news/articles/2021-07-15/softbank-invests-1-7-billion-in-korea-s-yanolja-ahead-of-ipo" target="_blank" rel="noopener">Yanolja, </a>which is getting ready for an IPO in 2H 2021/2022.</p>
<p>Established in 2005, Yanolja is considered to be the second largest property management software provider in the world after Oracle. Yanolja plans to use the investment to expand overseas and further invest in improving its technologies. Softbank's investment in Yanolja valued the company at about <a href="https://www.edaily.co.kr/news/read?newsId=01095526629143384&amp;mediaCodeNo=257&amp;OutLnkChk=Y" target="_blank" rel="noopener">9 trillion won</a> ($8 billion). Currently, Yanolja has about 1,500 employees, including about 1,000 employees in Korea and 500 employees overseas. </p>
<p><a href="http://www.theinvestor.co.kr/view.php?ud=20190612000473" target="_blank" rel="noopener">Yanolja</a> became a unicorn in June 2019 when it received a $180 million Series D round investment valuing the company at more than $1 billion. It is astounding how this company's valuation has jumped nearly 8x in the past two years. In addition to Softbank, other investors in Yanolja include GIC, Booking Holdings, Skylake Investments, <a href="https://www.smartkarma.com/entities/sbi-investment-korea-co-ltd" target="_blank" data-smartkarma-citation="entities:17244:1" rel="noopener">Sbi Investment Korea (019550 KS)</a>, and Aju IB Investments.</p>
<p>Softbank's recent investment in Yanolja would suggest a P/S multiple of 31x, which is very high. In November 2020, Yanolja selected <a href="https://www.bloomberg.com/quote/006800:KS" target="_blank" rel="noopener">Mirae Asset Daewoo Co.</a> as a lead arranger along with <a href="https://www.bloomberg.com/quote/016360:KS" target="_blank" rel="noopener">Samsung Securities Co.</a> as a co-underwriter. The company has yet to determine whether it would list in the U.S. or in Korea.</p>
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In this insight, we provide further details of Yanolja which has become the second largest investment for Softbank in Korea, after Coupang. In July 2021, Softbank Group Corp's Vision Fund II agreed to invest $1.7 billion in Yanolja, which is getting ready for an IPO in 2H 2021/2022.
Established in 2005, Yanolja is considered to be the second largest property management software provider in the world after Oracle. Yanolja plans to use the investment to expand overseas and further invest in improving its technologies. Softbank's investment in Yanolja valued the company at about 9 trillion won ($8 billion). Currently, Yanolja has about 1,500 employees, including about 1,000 employees in Korea and 500 employees overseas. 
Yanolja became a unicorn in June 2019 when it received a $180 million Series D round investment valuing the company at more than $1 billion. It is astounding how this company's valuation has jumped nearly 8x in the past two years. In addition to Softbank, other investors in Yanolja include GIC, Booking Holdings, Skylake Investments, Sbi Investment Korea (019550 KS), and Aju IB Investments.
Softbank's recent investment in Yanolja would suggest a P/S multiple of 31x, which is very high. In November 2020, Yanolja selected Mirae Asset Daewoo Co. as a lead arranger along with Samsung Securities Co. as a co-underwriter. The company has yet to determine whether it would list in the U.S. or in Korea.


Why Did Softbank Invest $1.7 Billion in Yanolja in Korea?