Alibaba Fuels South Korea’s First 2024 Unicorn: Ably Corp Soars to $2.1 Billion Valuation
In a major move that underscores the growing influence of Chinese investment in the South Korean market, Alibaba Group Holding Ltd (BABA) has injected a substantial $71.4 million (100 billion Korean won) into the rapidly expanding apparel brand, Ably Corp. This strategic investment catapults Ably Corp into the coveted unicorn status, achieving a valuation exceeding $1 billion – making it South Korea’s first unicorn of 2024, according to a report by The Korean Economic Daily.
The investment has dramatically increased Ably’s valuation. Before this round, Ably held a valuation of 900 billion won (approximately $640 million) following its 67 billion won pre-Series C fundraising round in January 2022. Now, its valuation has skyrocketed to an impressive 3 trillion won (roughly $2.1 billion), representing a substantial increase of over 230% in just a couple of years. This impressive growth showcases Ably’s success in navigating the competitive South Korean fashion market.
A Pivotal Investment for Alibaba and the South Korean Market
This marks a significant milestone not only for Ably Corp but also for Alibaba. This is the first time the Chinese e-commerce giant has made an equity investment in a Korean shopping app, signifying a strategic expansion into a key Asian market. Alibaba’s move highlights the increasingly attractive investment opportunities emerging from South Korea’s vibrant and innovative technology sector. The investment signals strong confidence in Ably Corp’s future growth potential and its ability to continue disrupting the fashion landscape.
Alibaba’s Broader Investment Portfolio
Alibaba’s investment activity extends beyond Ably Corp. According to its 13F filings for the third quarter of 2024, Alibaba holds stakes in several other notable companies, including XPeng Inc. (XPEV), Weibo Corp. (WB), Perfect Corp. (PERF), and Best Inc. (BEST). The company notably increased its stake in XPeng by a staggering 371% between the June and September 2024 quarters, demonstrating a continued focus on the electric vehicle market. Conversely, Alibaba slightly reduced its stake in Perfect Corp. by 2%, while its holdings in Weibo and Best remained unchanged.
Market Reaction and Alibaba’s Future Prospects
The news of Alibaba’s investment in Ably Corp. had a positive impact on the company’s stock price. Shares of Alibaba Group Holding’s ADR closed 0.90% higher at $87.37 per share on Friday, outperforming the 0.31% increase in the NYSE Composite Index. While analysts currently hold a “Buy” consensus rating for Alibaba, with an average price target of $119.82, the potential upside remains significant, with some analysts projecting a price as high as $155 per share. The vast range in price targets highlights the uncertainty surrounding Alibaba’s future performance, despite the bullish consensus sentiment.
This strategic investment in Ably Corp, coupled with Alibaba’s broader portfolio adjustments, suggests an active and forward-looking investment strategy focused on growth opportunities in both established and emerging markets. The South Korean market, with its tech-savvy consumers and dynamic fashion industry, seems poised for further expansion and innovation, driven in part by the influx of international capital. The long-term implications of this investment for both companies remain to be seen, but the short-term impact is undeniably positive, solidifying Ably Corp’s position as a major player in the South Korean fashion scene and highlighting Alibaba’s continued ambition for global expansion.
