Fast-growing South Korean e-commerce startup Levit has raised $46 million in a Series B round of funding led by billionaire Yuri Milner’s DST Global Partners.
The round was joined by new investor San Francisco-based BOND, which has also backed billionaire Melanie Perkins’ Australian design software startup Canva and South Korean home interior app oHouse. Existing investors, including KB Investment (the venture arm of South Korea’s largest bank by market capitalization), Korean billionaire Park Hyeon-joo’s Mirae Asset Capital, Korea Investment Partners, GS Ventures and Seoul-based Klim Ventures, also participated in the round.
In 2021, Levit launched Alwayz, a shopping app that allows users to buy food and clothes, among other things, at low prices with free shipping. Using AI, Alwayz finds cheap products from lesser-known brands to promote, creating a competitive cycle among sellers to keep prices low. Alwayz has 7 million users, 2.5 million monthly active users and 1.3 million daily active users, according to Levit.
Like billionaire Colin Huang’s Chinese e-commerce giant Pinduoduo, Alwayz combines value-based shopping with gamified experiences. For example, Alwayz has an AI supported game where players nurture virtual crops to earn real fruits and vegetables. “By combining user-centric enjoyment and competitive pricing, Alwayz aspires to create a compelling value proposition that appeals to customers worldwide,” said Jaeyun Kang, cofounder and CEO of Levit, in a statement.
According to the U.S. Commerce Department’s International Trade Administration, the high internet penetration rate in South Korea with around 99.7% of households having internet access is the main driving force of e-commerce growth in the country. According to a report by JPMorgan, South Korea’s mobile commerce market is forecast to increase at a compound annual growth rate of 19.5% to 2024.