Zigbang gets 100 billion won of investment, borrows 60 billion won

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Zigbang gets 100 billion won of investment, borrows 60 billion won

Published: 04 Jul. 2022, 17:25

A view of the 42 Convention Center, a virtual building in Soma, Zigbang's metaverse application. [ZIGBANG]

Zigbang raised 100 billion won ($77 million) in funding from the Korea Development Bank (KDB) and other investors and borrowed money for its acquisition of a Samsung SDS business unit.

The company announced on June 30 that it received 100 billion won of investment from KDB, IMM Investment and Hana Securities.

With the recent funding, its post-money valuation is now 2.5 trillion won.

Zigbang said investors highly valued its metaverse business, which offers a virtual office environment on its Soma application.

The company plans to use the funding to improve its services and invest in new business areas.

Zigbang also announced that it will borrow 60 billion won from KDB and Shinyoung Securities. The loan will be used to finance its acquisition of Samsung SDS’s Home IoT unit, which makes home gadgets, such as digital door locks. The acquisition was agreed to in January. The price was not disclosed.

“We gained momentum for further growth and innovation of the property market amid a shortage of investments during a global economic crisis and a time of rising interest rates,” said Ahn Sung-woo, CEO of Zigbang. “When the acquisition of Samsung SDS’s Home IoT unit closes in the second half of this year, we plan to use the business to create synergies.”

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]