Musinsa Set to Receive up to $21M Investment from EQT
Deal News | Apr 16, 2025 | Aim Group
Swedish investment company EQT is in the final stages of negotiating a deal to invest between KRW20 billion and KRW30 billion (approximately $14.1 million to $21.1 million USD) in Musinsa, a leading fashion retailer based in South Korea. The investment, which is led by EQT Growth from its Hong Kong office, is anticipated to increase Musinsa's valuation to KRW4.0 trillion ($2.8 billion). Musinsa, known for building a multiplatform which integrates a product database and common functions across all its services, is distinctly planning to venture into the secondhand market and is considering an IPO. The company has a significant history of raising capital, having accumulated $508 million through five funding rounds from notable firms such as Sequoia Capital and Wellington Management. With operations including its subsidiary SLDT SoldOut, a marketplace for used fashion items and electronics, the brand reported a significant 25% year-on-year sales increase in 2024, reaching KRW1.1 trillion ($776 million). Additionally, their operating profit soared to KRW112.3 billion ($79.3 million). Musinsa is committed to expanding K-fashion globally while establishing a robust infrastructure for the fashion industry to thrive.
Sectors
- Investment & Private Equity
- Fashion & Retail
Geography
- South Korea – The target company, Musinsa, is based in South Korea, which is central to the article's focus on its market activities and expansion strategies.
- Sweden – EQT, the investment company orchestrating the deal, is based in Sweden. It represents the geographical origin of the investing party.
Industry
- Investment & Private Equity – EQT, a Sweden-based investment firm, is making a significant investment in Musinsa, illustrating activity within the private equity and investment sector.
- Fashion & Retail – Musinsa is a fashion retailer focusing on K-fashion and global expansion, active in both the direct fashion market and the emerging secondhand market.
Financials
- KRW20 billion to KRW30 billion (approximately $14.1 million to $21.1 million USD) – The amount EQT is planning to invest in Musinsa.
- KRW4.0 trillion ($2.8 billion USD) – The expected valuation of Musinsa post-investment by EQT.
- $508 million – The total amount raised by Musinsa across five funding rounds.
- KRW1.1 trillion ($776 million USD) – Musinsa's reported sales for 2024.
- KRW112.3 billion ($79.3 million USD) – Musinsa's reported operating profit.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Musinsa | Target Company | Company | A leading South Korean fashion retailer planning to extend its market reach into the secondhand market and considering an IPO. |
| EQT | Investor | Company | A Swedish investment company proceeding with a significant capital infusion into Musinsa through its EQT Growth branch. |
| Sequoia Capital | Previous Investor | Company | An American venture capital firm that has previously invested in Musinsa. |
| Wellington Management | Previous Investor | Company | A private, independent investment management company also listed as one of Musinsa's funding sources. |