NHN Cloud secures $122 million from IMM amid funding drought

NHN Cloud raised 150 billion won ($122 million) of funding from IMM Investment, a Seoul-based private equity firm, amid a venture capital slump and a freeze in big deals.

In the latest funding, IMM will acquire a 15 percent stake in the cloud service provider.

NHN Cloud said that the latest deal valued the company at 1 trillion won, a threshold for a start-up to be recognized as a so-called unicorn.

The capital will be used to advance research and development capabilities for cloud computing offerings and expanding its footing in overseas markets, according to a statement released by NHN Cloud.

Since the Pangyo, Gyeonggi-based tech company has been focused on public corporations as target clients, the proceeds will also go toward widening the client base among private companies.

Another area of focus will be building data centers, especially outside of Seoul, to deliver optimized services for clients based in non-capital regions.

IMM cited positive market prospects for cloud computing and NHN Cloud’s business track record as the reasons for the decision.

“We are confident that NHN Cloud can become a leading cloud company with its competitiveness if it is to continue expansion in the growing cloud market,” a spokesperson at IMM said in the statement.

IMM raised the possibility that NHN Cloud could collaborate with its other invested tech and security companies such as Dreamline, Dreammark1 and GS ITM.

“The latest funding proved NHN Cloud competitiveness despite unfavorable market conditions as it will provide resources and partnership for growth,” said NHN Cloud co-CEOs Paik Do-min and Kim Dong-hoon.

NHN started developing its cloud technology in 2014, specializing in a system for games. It spun off the cloud business last year and branded it as NHN Cloud.

In the first year, the unit targeted the public corporations transitioning toward cloud in storing data, winning a market share of 39 percent in the public segment last year.

BY PARK EUN-JEE [prak.eunjee@joongang.co.kr]