VIG Partners, a private equity fund (PEF) management company, announced on the 8th that its institutional sector subsidiary VIG Alternative Credit (VAC) has acquired $600 million worth of new convertible bonds from the proptech corporation Zigbang.
A VAC official noted, "We decided to invest this time because we are paying attention to the competitiveness of the proptech-based services held by domestic real estate platforms Zigbang and Hogangnono and the potential of the real estate industry."
VAC has noted that Zigbang is expanding into new profitable businesses, such as advertising services for apartments and new construction marketing products. It has also positively evaluated Zigbang's efforts to secure next-generation growth engines through AI-based smart home solutions like facial recognition door locks and lobby phones.
Through this investment, Zigbang aims to expand its new business areas and broaden its global exports to countries including China, Singapore, Taiwan, and Australia. Zigbang has improved its operating loss by more than 30% last year and is focusing on achieving a profit transition in the first quarter of 2025, while also improving internal revenue and securing financial stability.
Han Young-hwan, vice president of VIG Partners leading VAC, said, "As a core player in the proptech industry, I view Zigbang's market influence and long-term vision positively," adding, "VAC will strategically support Zigbang's growth from a mid- to long-term perspective."
Zigbang CEO Ahn Seong-woo said, "Based on this investment, we plan to further develop the newly established profitable new business while continuously focusing on securing financial soundness to strengthen the improvement of our performance."
Meanwhile, VAC aims to form its third fund with a scale of about $350 million by the end of this year and plans to continue aggressive investment moves while raising funds.