Private equity investors Anchor Equity Partners and KKR are to take a controlling stake in South Korean mobile eCommerce company Ticket Monster from Groupon.

Anchor and KKR, in conjunction with Ticket Monster Korea management, will inject new capital into the company to help fund its future growth opportunities. Anchor and KKR will hold equal stakes in the company.

Some of the world’s largest pension, sovereign wealth funds and institutional investors, including the Canada Pension Plan Investment Board and Pavilion Capital, will also be participating as investors in this transaction. Groupon, which acquired Ticket Monster Korea in January 2014, will retain a fully diluted 41 per cent minority stake in the business. The investment is based on a $782 million fully diluted valuation of Ticket Monster Korea. KKR and Anchor will work closely with Ticket Monster Korea’s co-founder and CEO Dan Shin and the management team to grow the business.

“KKR and Anchor not only bring global experience in the retail and technology sectors, but they are also experienced local partners with strong business expertise in South Korea,” said Shin.

“We are thrilled to be working with distinguished partners who share our vision for growth and offer significant pools of capital in support of Ticket Monster Korea initiatives. With their help and investment, this company will have greater opportunities to attract new customers and expand into new businesses.”

Groupon CEO Eric Lefkofsky said the partnership strengthens an already powerful local brand.

“Ticket Monster demonstrates the global appeal and power of a mCommerce marketplace,” said Lefkofsky. “With additional support from KKR and Anchor, Ticket Monster Korea will be even better resourced and positioned in the Korean market.”

Ticket Monster Korea is a pioneering mobile-first, eCommerce platform that provides a premium online and mobile shopping experience to customers across South Korea. It has already become one of Korea’s largest online retail marketplaces and offers a curated selection of discounted items across three main categories: GGoods, which includes clothing, household and fast-moving consumer goods; Local Services, including restaurant, entertainment and leisure coupons; and Travel, encompassing discounted transportation tickets, hotel stays and vacation packages.

Ticket Monster Korea’s business leverages key consumption and technology trends in South Korea, a market which is experiencing a rapid shift from offline-to-online and PC-to-mobile retail. South Korea’s eCommerce market has experienced a CAGR of 16 per cent since 2008, stemming from consumers’ increasing focus on convenience, selection and value items, according to South Korea’s National Statistics Office. Mobile commerce, led by application-based technology, is expected to achieve 40 per cent market penetration by 2017, up from two per cent in 2011, according to Mirae Asset research. This complements steady mobile growth in South Korea due to the country’s extensive telecom and logistics infrastructure.

Ticket Monster Korea’s mobile application had been downloaded more than 9 million times by December 31, 2014. About 70 per cent of Ticket Monster Korea’s customers complete their transactions via mobile.

“We believe that South Korea represents a sizable and attractive market opportunity given the clear shift by consumers towards mobile commerce, convenience and value goods,” said Stephen Ko, MD of KKR Asia, and Sae Wook Wi, partner of Anchor.

“We are excited to invest in this fast-growing sector and provide greater financial resources to Ticket Monster. The strong combination of a well-resourced shareholder base and an innovative management team puts Ticket Monster Korea in pole position to lead the market with dynamic, creative services and drive value for consumers. We look forward to working with Dan, his team at Ticket Monster Korea and Groupon during an exceptional time for mobile commerce in Korea,” added Ko and Wi.

KKR, which is making the investment from Asian Fund II, has a long-established track record of supporting technology companies, having invested more than $13 billion of equity in more than 50 companies across software, internet, media and IT-infrastructure since 2000. Recent investments include GoDaddy, Internet Brands, Trainline and Uxin.

KKR also intends to leverage its experience investing in world-class consumer goods and retail companies, including Oriental Brewery, Dollar General, Walgreens Boots Alliance and Haier, to help Ticket Monster Korea grow and achieve its goals.

Established in 2012, Anchor has quickly garnered a reputation for its experience and portfolios in the services, logistics & distribution and consumer & retail sectors in Korea, as well as successful track records in developing its portfolio companies as leaders in their respective industries.

Key investments include Metanet MCC, Geo-young, CheonJiYang and Kyungnam Energy. Anchor will leverage its experience to create value in Ticket Monster Korea by implementing best practices and instituting sophisticated corporate governance and controls. Anchor invests in Ticket Monster Korea from Anchor Equity Partners Fund I.

The transaction is expected to close in the second quarter of 2015, subject to regulatory and customary closing conditions.