Karrot Posts First Annual Profit in 8 years…”Will Strengthen Hyperlocal Vision”
Karrot’s revenues increased 156% to $94.7 million (KRW 127.6 billion) in 2023, compared to $37 million (KRW 49.9 billion) in 2022, with an annual operating profit of $12.9 million (KRW 17.3 billion), marking its first profit.
With 36 million cumulative subscribers and nearly 19 million monthly active users (MAUs), Carrot has become the most popular app in the country and has seen significant year-on-year growth. Its annual revenue of $9.47million (KRW 127.6 billion) in 2023 is more than 10 times higher than its revenue of $ 8.76 million (KRW 11.8 billion) in 2020, just three years after launching its local community business (Neighbourhood Life nationwide). (Based on Karrot Market’s own criteria)
On a consolidated basis, Karrot Market incurred an operating loss of $816,000 (KRW 1.1 billion) as the costs of overseas subsidiaries such as North America and Japan, as well as Karrot Pay subsidiaries, were included in operating expenses. However, as a result of Karrot Market’s own profit generation, the operating loss was reduced by more than 98% year-on-year, and in terms of net profit, Karrot Market recorded a surplus of $1.781 million (KRW 2.4 billion). With the profits generated by its parent company, Karrot Market will continue to invest in global market expansion and expand the usability of Karrot Pay.
Karrot’s profit growth was driven by its advertising business. Positioned as the optimal advertising solution in the hyperlocal era, Karrot’s advertising platform continued to demonstrate growth and competitiveness in terms of numbers. The number of advertisers and the number of ads served increased significantly year-on-year, and ad revenues grew more than 2.5 times year-on-year. Over the past three years, ad revenues have grown at a CAGR of 122%, more than doubling each year. Karrot plans to further enhance its advertising platform and diversify its product offering to strengthen its unique position as a hyperlocal marketing channel.
With this growth, Karrot will accelerate its investment in new businesses. It plans to develop new business models and diversify its business beyond the advertising platform, including building new business models in verticals such as recruitment, used cars and real estate, and creating a hyperlocal financial ecosystem through Karrot Pay, the first locally-based financial service in Korea.
Karrot will also accelerate our global expansion. Launching in the UK in November 2019 under the name ‘Karrot’, Karrot has now expanded its range of services to more than 560 locations in four countries, including Canada, the US and Japan. In Canada, the company’s North American base, the number of monthly active users has more than tripled year-on-year in February 2024, and Japan has also seen remarkable growth, with monthly active users increasing more than 3.5 times year-on-year.
As overseas markets confirm the growth potential of Karrot’s vision of a hyperlocal platform, the company plans to continue investing in its global business this year.
Do yeon Hwang, CEO of Karrot, said: “Despite the challenging environment of the global economic downturn, we achieved our first annual profit since inception through strong revenue growth and cost efficiency. Based on our solid growth, we plan to focus on investing in our future vision rather than maximising short-term profits. As a local living community, we will enhance our service competitiveness and strengthen our hyperlocal vision that captures the diverse connections of neighbourhoods.