Jaeyeon Kim, CEO of JeongYookGak
JeongYookGak(정육각), a D2C food tech startup, has raised approximately $7.5 million (KRW 10 billion) in new funding from NH Investment & Securities, Atinum Investment and Capstone Partners.
JeongYookGak plans to use the new funds to finance the operations of both companies, including its subsidiary Green Village (초록마을), and accelerate the completion of its turnaround. The strategy is to accelerate their own cash generation capabilities as both companies are close to achieving positive operating results after focusing on strengthening their internal structure and improving performance over the past year.
JeongYookGak has improved its performance, with monthly operating losses at the end of last year reduced by 85% compared to before the acquisition of Green Village. Since the beginning of the year, the company has also expanded its offering across the food spectrum with the launch of more than 40 new private label (PB) products that synergize with its Ultra Fresh identity.
Last year, Green Village launched same-day and early-morning delivery and revamped its app with AI to make shopping more accessible, while focusing on improving profitability by strengthening fundamentals and differentiating its private-label product strategy. In January and February this year, sales per franchisee store were up 22% year-on-year, demonstrating a rapid recovery.
“With this investment, we have laid a solid foundation to resolve financial issues and accelerate synergistic performance,” said a JeongYookGak official. “Both companies are expected to enter a profitable structure as early as the first half of this year.”
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