China’s Alibaba Group is looking into a potential acquisition of a 5 per cent stake in South Korean fashion platform Ably to increase its foothold in the country, The Korea Economic Daily reported.
The deal, if happens, is expected to be valued at 100 billion won (US$72.4 million). Banking sources also disclosed Ably was seeking another 100 billion won from other global investors, including Ontario Teachers’ Pension Plan and CVC Capital Partners.
Neither Alibaba nor Ably have responded to the media.
Founded in 2018 as Dongdaemun Fashion Mall’s marketplace for wholesale fashion products, Ably has more than 50,000 sellers on its platform. The company secured $38 million from Pine Tree Asset Management last year.
It reported 69.4 billion won and 74.4 billion won in operating losses in 2021 and 2022, respectively. Last year, Ably posted 259.5 billion won (US$189 million) in revenue with its first annual profit since its founding.
Last month, Alibaba Group was reported to invest $1.1 billion in South Korea over the next three years to build a logistics centre and expand businesses.
