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Corporation
MOBILE & TELECOMMUNICATIONS | Mobile Commerce / Food & Grocery
woowahan.com

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Founded Year

2010

Stage

Acquired | Acquired

Total Raised

$458.94M

Valuation

$0000 

About Woowa Brothers

Woowa Brothers operates the mobile app Baedal Minjok, aka Baemin, which enables local places that deliver food to connect directly with consumers via the company's smartphone application. Their application offers places based on location, user reviews, and menus. Woowa Brothers also offers Baemin Pay, which streamlines the mobile payment process by simplifying the self-certification to a single step, providing higher customer satisfaction in food ordering experience. After verifying payment card information once, users can make payments for their orders with simple 6-digit password. The company is also developing Baemin David, a self-developed artificial intelligence (AI) assistant that helps its customers choose menus and diners.

Woowa Brothers Headquarter Location

Jangeun Building, 2F 2, Wiryeseong-daero, Songpa-gu

Seoul, 05544,

South Korea

+82 1600-7001

Latest Woowa Brothers News

Delivery Hero : Half-yearly financial report 2021

Aug 26, 2021

08/26/2021 | 01:41am EDT Message : Company | Interim Group Management Report | Half-Year Financial Statements | Further Information DELIVERY HERO AT A GLANCE H1 2021 2,682.5 -40.1% NOTE: DELIVERY HERO KOREA LLC ("DHK") IS PART OF THE ASIA SEGMENT AND IS INCLUDED IN THE 2020 SEGMENT PERFOR- MANCE, BUT IS EXCLUDED FROM JANUARY 2021. WOOWA IS INCLUDED IN THE ASIA SEGMENT SINCE THE CLOSING OF THE TRANSACTION ON MARCH 4, 2021. DELIVERY HERO'S OPERATIONS IN BOSNIA AND HERZEGOVINA, BULGARIA, CROATIA, MONTENEGRO AND SERBIA, ARE REFLECTED IN THE EUROPE SEGMENT UNTIL JUNE 17, 2021. ROMANIA IS INCLUDED IN THE PERFORMANCE OF THE EUROPE SEGMENT FOR THE FIRST SIX MONTHS OF 2021. REVENUES, ADJUSTED EBITDA, GROSS MERCHANDISE VALUE (GMV) AS WELL AS THE RESPECTIVE GROWTH RATES FOR MENA AND AMERICAS ARE IMPACTED BY HYPERINFLATION ADJUSTMENTS AS ARGENTINA AND LEBANON QUALIFY AS HY- PERINFLATIONARY ECONOMIES ACCORDING TO IAS 29. TOTAL SEGMENT REVENUE IS DEFINED AS REVENUE BEFORE SUBTRACTION OF VOUCHER EXPENSES. THEREFORE, TOTAL SEGMENT REVENUE DIFFERS FROM THE IFRS DEFINITION THAT IS THE BASIS FOR THE REMAINING REPORT. DUE TO INTERSEGMENT CONSOLIDATION ADJUSTMENTS, REVENUES OF THE SEGMENTS DO NOT SUM UP TO TOTAL SEG- MENT REVENUE. ORDERS AND GMV ARE ACCOUNTED FOR IN THE RESPECTIVE PLATFORM SEGMENTS AND ARE SHOWN IN THE INTEGRATED VERTICALS SEGMENT FOR ILLUSTRATIVE PURPOSES ONLY. ORDERS (MILLION) ECONOMIC REPORT PAGE 4 BUSINESS DEVELOPMENT BY SEGMENT OUTLOOK 2021 PAGE 12 Company | Interim Group Management Report | Half-Year Financial Statements | Further Information INTERIM GROUP MANAGEMENT REPORT A. GROUP PROFILE The statements made in the Annual Report 2020 on the business model, the Group structure, the segments, the supervision, the management system as well as research and development ("R&D") are still applicable in the first six months of 2021. Management Delivery Hero SE's Management Board was expanded from two to three members. Effective May 3, 2021, the Supervisory Board appointed Pieter-Jan Vandepitte, Chief Operating Officer, as a third Management Board member. He assumed responsibility for the operational business from Ni- klas Östberg and also oversees sales, customer care and business intelligence. Niklas Östberg (CEO) and Emmanuel Thomassin (CFO) remain on the Management Board. Employees The number of employees increased to 43,838 as of June 30, 2021 (December 31, 2020: 35,528) with 3,124 employees attributed to the acquisition of Woowa Brothers Corp. and the remainder mainly due to an increase in sales personnel and additional personnel for the new verticals. B. ECONOMIC REPORT 1. Market and Industry Environment According to the World Economic Outlook (International Monetary Fund, IMF, July 2021) global growth is projected at 6% in 2021, moderating to 4.9% in 2022. Compared to the outlook given in April 2021, prospects for emerging market and developing economies have been marked down for 2021, especially for Emerging Asia. By contrast, the forecast for advanced economies is revised upwards. The revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility. The IMF states that high uncertainty surrounds this outlook, which is related to the path of the pandemic, the effectiveness of policy support to provide a bridge to vaccine-powered normali- zation, and the evolution of financial conditions. The Organisation for Economic Co-operation and Development (OECD) also projects a sharp upwards revision from the December 2020 projection of 4.2% for 2021. The OECD now expects economic growth to be 5.8% this year. The vaccine rollout in many of the advanced economies has been driving the improvement. For 2022 world GDP growth is expected to be 4.4%, in line with what the IMF predicted in April 2021, but 0.5 percentage points below IMF's July 2021 prediction.1 Economic improvements in 2021 still depend on how the impact from COVID-19 will decline on a global scale as well as how effective the economic policy actions in countries will be. A positive outlook would expect these policies to result in limited bankruptcies, job losses and system-wide financial strains. The following discussion of the outlook by region is based on the Global Economic Prospects Report issued by the World Bank Group in June 2021.2 Please note that the regions described below (defined by the World Bank Report) differ in country constellation from Delivery Hero segments defined for financial reporting purposes but serve as an indication for the economic outlook of the segments. Asia Growth in South Asia is expected to rise to 6.8% in 2021. The region's outlook is underpinned by a rebound in private consumption, which is expected to account for about half of overall growth. Despite continued recovery, output in 2022 is forecast to be 9% below pre-pandemic projec- tions. The resulting effects of the COVID-19 pandemic have also been affecting countries outside the South Asia region (here referred to as East Asia and Pacific). Mainly due to the development in China, regional growth is projected to strengthen to 7.7% in 2021. When not accounting for China, output in the rest of the region is projected to grow by 4.0% in 2021. This is mainly because of continued pandemic -related headwinds and a delayed recovery of global tourism and travel. Growth for 2022 in the rest of the region is projected to accelerate to 5.0% as the economic recovery takes hold. MENA GDP in the Middle East and North Africa region is expected to grow by 2.4% in 2021. The region should benefit from the recent rebound in oil prices, stronger external de- mand, and less economically disruptive COVID-19 out- breaks. According to the World Bank research, growth is expected to strengthen further in 2022 to 3.5%. Neverthe- less, the outlook is highly uncertain and tied to the course of the pandemic and vaccine rollouts. Europe The economy in the Europe and Central Asia region is forecast to expand 3.9% in 2021. Nonetheless, the outlook remains challenging especially given continued disruptions from the pandemic, combined with tighter monetary policy as well as elevated policy uncertainty and geopolitical tensions. For 2022 growth is expected to remain at 3.9%, as the recovery in domestic demand offsets a continued drag from the withdrawal of macroeconomic policy support. Americas Growth in Latin America and the Caribbean is projected to be 5.2% in 2021. The near-term outlook for the region assumes moderate progress in vaccine rollouts in most coun- tries, less stringent mobility restrictions than in 2020, positive spillovers from strong growth in advanced economies and fiscal support in the United States. Growth in 2022 is projected to soften, to 2.9%. 1 OECD, Economic Outlook, May 2021 2 World Bank, Global Economic Prospects, June 2021 4 Company | Interim Group Management Report | Half-Year Financial Statements | Further Information Since Q3 2018, the Americas segment revenues and growth rates have been impacted by the Argentinian operation qualifying as a hyperinflationary economy under IAS 29. This assessment has remained applicable for H1 2021. Since Q4 2020 Lebanon also classifies as a hyperinflation- ary economy according to IAS 29. Therefore, revenues and growth rates in the MENA segment were impacted. No other countries of operation have qualified as hyperin- flationary to date.3 Sector development Delivery Hero has an extensive geographic footprint with operations across several attractive markets in Asia, MENA, Europe, and Latin America. 2020 was an unprecedented year in many ways with impacts continuously stretching out into the first half of 2021. The COVID-19 pandemic still has dramatic effects on people's lives and societies. One of the consequences brought about by the resulting situation was an accelerated usage of delivery services in many markets. The impact of the pandemic on Delivery Hero was multifold: while partly strong structural growth was further empha- sized, we also experienced strict curfews in some countries in the MENA segment that had an adverse effect on order numbers. On the side of our business partners, the acquisition of new partners - such as restaurants and shops - was higher than expected. Change in our industry is widespread. What started as a marketplace connecting restaurants with customers, has evolved significantly over recent years. By establishing our own delivery capabilities, Delivery Hero was able to also connect new customers with restaurants that had no own food delivery capabilities. We thereby not only increased the quality of our service by offering a wider selection of high quality restaurants to more customers, but also expanded our total addressable market (TAM). By continuously investing in logistics and technology, we are looking Company information as of June 30, 2021 Total Segment Revenue is defined as revenue before the reduction of vouchers. Performance measure not defined by International Financial Reporting Stand- ards (IFRS). Adjusted EBITDA is defined as earnings from continuing operations before income taxes, financial result, depreciation and amortization and non- for ways to maximize the efficiency of our operations, the utilization of our rider network and the quality of our service offering. The first half of 2021 saw a further continuation of this focus. While the global food delivery industry grew faster than we had originally expected, the pandemic also induced significant stress to the ecosystem, which ultimately brought us even closer to our partners. We continued to undertake a long list of measures, helping businesses reach customers even when inhouse dining was prohib- ited. Delivery Hero also supported campaigns to drive traffic to restaurants, waived onboarding fees and optimized the billing cycle to further increase the frequency of pay- ment, to name only some examples of measures undertaken in many markets to support our partners. In H1 2021 Delivery Hero also accelerated the investments in the area of quick commerce - particularly via dark stores, called Dmarts, of which a significant number were opened during 2020 as well as in the first six months of this year. The concept of quick last-mile delivery services for convenience and grocery items continues to be a key strategic initiative for the business, capitalizing on the extensive investments Delivery Hero has made in logistics and technology for first and last-mile delivery. 2. Business development a) Performance While the global pandemic has further increased the demand for delivery services throughout all markets, the organic growth is supplemented by acquisitions during the first half of 2021. Total Segment Revenue4 increased significantly by 138.1% on a year-on-year basis to € 2,682.5 million in the first half of the year 2021. The negative adjusted EBITDA5 of the segments (H1 2021: 350.8 million, H1 2020: € 319.8 million) increased com- pared to the prior period due to continuing investments in our service offering, including the extension of the Dmart rollout, improved customer experience and customer re- tention. Orders and GMV increased by 135.9% and 158.8% operating earnings effects. Non-operating earnings effects comprise, in particular (i) expenses for share-based compensation, (ii) expenses for services in connection with corporate transactions and financing rounds, (iii) expenses for reorganization measures and (iv) other non-operating expenses and income, especially the result from disposal of tangible and intangible assets, the result to 1,224.6 million and € 13.3 billion, respectively. Conse- quently, the adjusted EBITDA to GMV margin has improved from negative 6.2% in H1 2020 to negative 2.6% for the first half of the year 2021. b) Acquisitions and investments On December 13, 2019, Delivery Hero SE entered into agreements to acquire approximately 88% of the shares in the South Korean Woowa Brothers Corp. ("Woowa trans- action") and resolved on a capital increase against a contribution in kind under the exclusion of subscription rights. On February 2, 2021, Delivery Hero received the written regulatory approval from the Korea Fair Trade Commission ("KFTC") confirming its conditional regulatory approval of the transaction by imposing structural reme- dies. The transaction effectively closed March 4, 2021. The total consideration consists of € 1.6 billion in cash and 39.6 million new shares in Delivery Hero valued at a share price of € 103.35 as of closing of the transaction on March 4, 2021, resulting in a total consideration of € 5.7 billion. In the first six months of 2021, Delivery Hero increased its shareholding in the Glovo Group by participating in a funding round by investing approx. € 229 million, thereby resulting in an updated stake of 37.3% on a fully diluted basis. Further, in March 2021, Delivery Hero and iFood entered into an investment agreement to jointly strengthen their market position in the Colombian market. iFood contributed to DH's Colombian subsidiary, Inversiones CMR S.A.S., all of its 100% holding in Come Ya S.A.S., its Colom- bian subsidiary, as a contribution in kind. Both iFood and DH made additional equity cash contributions, resulting in iFood holding 51% and Delivery Hero holding 49% of outstanding shares. Delivery Hero accounts for its stake in the joint venture using the equity method. c) Divestments and disposal groups held for sale In December 2020, Delivery Hero accepted the structural remedy that the Korean Fair Trade Commision ("KFTC") imposed as a condition for their approval of the Woowa from sale and abandonment of subsidiaries, allowances for other receivables and non-income taxes. Adjusted EBITDA excludes depreciation from right-of-use assets under IFRS 16. 5 This is an excerpt of the original content. To continue reading it, access the original document here . Attachments

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Research containing Woowa Brothers

Get data-driven expert analysis from the CB Insights Intelligence Unit.

CB Insights Intelligence Analysts have mentioned Woowa Brothers in 3 CB Insights research briefs, most recently on Aug 17, 2021.

Expert Collections containing Woowa Brothers

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Woowa Brothers is included in 3 Expert Collections, including Restaurant Tech.

R

Restaurant Tech

778 items

Hardware and software for restaurant management, bookings, staffing, mobile restaurant payments, inventory management, cloud kitchens, and more. On-demand food delivery services are excluded from this collection.

O

On-Demand

1,283 items

F

Food & Beverage Delivery (Grocery & Meal)

1,351 items

Startups and tech companies offering online grocery, food, beverage, and meal delivery services.

Woowa Brothers Patents

Woowa Brothers has filed 4 patents.

The 3 most popular patent topics include:

  • Online food ordering
  • Translation
  • Videotelephony
patents chart

Application Date

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Related Topics

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5/5/2017

11/3/2020

Online food ordering, Central banks, Telephone numbers, Videotelephony, Translation

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Online food ordering, Central banks, Telephone numbers, Videotelephony, Translation

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