Team Fresh, a South Korean cold-chain logistics company, has launched its pre-IPO fundraising, targeting a valuation of over 650 billion won (approximately $485 million). With a dominant 90% share of the early-morning delivery market, the company aims to hit a post-IPO valuation of 1 trillion won ($747 million).
However, a waning pre-IPO market for startups may pose challenges. Venture capital firms (VCs), once eager to invest in pre-IPOs for quick returns, are now pulling back. Team Fresh’s ongoing financial losses are also seen as a potential hurdle.
According to the investment banking industry, on Sept 11., Team Fresh began approaching institutional investors, seeking to raise up to 100 billion won ($74.69 million) in its pre-IPO round. The company plans to start by negotiating share sales from existing investors and intends to bring in private equity firms to buy new shares.
Team Fresh’s pre-IPO valuation is set at around 650 billion won ($485 million), based on its pre-money valuation—a 30% jump from the 500 billion won ($373 million) valuation in its Series D funding round in June 2022. At that time, KT and other investors had pumped in 160 billion won ($120 million).
Founded in May 2018 by former Kurly logistics leader Lee Seong-il, Team Fresh identified a growing demand for early-morning fresh food deliveries and the lack of companies with dedicated cold chain infrastructure. The cold chain, crucial for keeping products fresh during delivery, is at the heart of Team Fresh’s operations. The company has built its own infrastructure and has quietly become a significant player by handling fresh food deliveries for smaller e-commerce businesses.
