PRIZM, a retail media platform founded by Yoo Han-ik, former Chairman of South Korea’s social commerce giant Ticket Monster (TMON), is facing a critical financial situation.
The company, which has raised approximately $28.74 million (40 billion won), saw its capital eroded by 96% at the end of last year, sparking fears of total capital depletion without further investment.
According to the Financial Supervisory Service of Korea, on April 16, PRIZM’s operator, RXC, reported a revenue of $1.18 million (1.64 billion won) in the past year, while its operating losses amounted to $14 million (19.6 billion won). This was a significant increase from $560,345 (780 million won) in revenue in 2022, although operating losses had slightly decreased from $12 million (16.5 billion won) the previous year.
RXC, a media commerce startup established in 2021, was spearheaded by Yoo Han-ik. Yoo, a first-generation mobile commerce leader who co-founded Coupang with Chairman Kim Bom-suk, aimed to replicate his earlier success in this new venture.
The startup received 20 billion won in funding in its seed round shortly after inception, followed by another 20 billion won in a Pre-A investment round last year. Investors in RXC include Z Venture Capital (ZVC), a subsidiary of Z Holdings created by Son Jung-eui, Chairman of SoftBank, Lee Hae-jin, founder of Naver, and major media groups like JTBC-JoongAng Group.
PRIZM operates as a cutting-edge media commerce platform that combines high-sensitivity short-form videos such as TikTok and YouTube Shorts and live broadcasts into a trendy digital media content offering. It also provides mobile showrooms for around 70 brands, each serving as an in-app store with digital content customized to the brand’s specifications.
Despite being a startup, the industry has expressed concerns over PRIZM’s large losses compared to its revenue. As of the end of last year, the company’s capital was approximately $28.52 million (39.9 billion won), with a total equity of around $1.23 million (1.4 billion won), indicating a capital erosion rate of 96.5%. With only about 3% of its capital remaining, PRIZM also reported an unappropriated deficit of about $27.54 million (38.5 billion won).
