About 10 years ago, Donghwan Kim helped his potter cousin find sales channels such as flea markets to sell his pottery. However, he struggled to find a suitable platform, so after about a year, Kim decided to create his own marketplace for handicrafts called Backpacker in South Korea.
Today, Backpackers, which operates a handmade marketplace called idus, extended its Series C funding by $16 million (20 billion won), two and a half years after its initial Series C of $24 million (approximately 30 billion won). . won).
The startup is currently valued at around $240.1 million post-money, according to sources familiar with the situation. Backpacker said it has raised a total of $56.8 million since its inception in 2012, but declined to disclose a valuation.Returning investor Altos Ventures joins Stone Bridge with new investors Axiom Asia and Vanderbilt University.
With ambition to become Asia’s Etsy, the new capital will help backpackers expand into Southeast Asia including Singapore, Hong Kong, Taiwan, Indonesia, Thailand, Vietnam, Malaysia and the Philippines in the second quarter of this year. In an interview with Kim on TechCrunch. Backpacker also plans to invest the proceeds in research and development to advance its artificial intelligence-powered search and recommendation system, as well as hire more employees.
The startup plans to sell products made in South Korea overseas and bring handcrafted products made in Southeast Asia to South Korea through its platform. Other countries such as Japan and the United States are on the radar for next destinations, Kim said. Backpackers have to compete with other handmade markets in Asia, such as Japan-based Minne and Creema, Taiwan-based Pinkoi and Singapore-based Carousell. The size of the market for handmade products in Asia is $307.8 billion in 2027up from $149 billion in 2021.
In addition to having idus as its core business, the company also operates a crowdfunding platform called idus. tumble bug Backpackers also launched Steadio, a Patreon-like creator subscription service to connect artists and their fanssaid Kim. Backpacker’s model aims to be a one-stop-shop his platform for creators, which Kim noted is a key differentiator for the company.
“We want to be a one-stop-shop platform for creators. This will allow users (creators) to shop for handicrafts and crafts, including homemade ones such as bakery, soap, candles, jewelry, fragrances, bags, furniture, etc. You can open your own internet boutique selling goods, home decor, art, help them crowdfund their products, connect creators with fans and offer online or offline classes.” Kim told TechCrunch.
Backpacker, which had about 60,000 creators as of November last year, said its total product volume exceeded $804 million in November, and crossed the break-even point in the second half of last year. We are still in the red for the fiscal year. The outfit is expected to generate profits this year, Kim said.
