As the domestic e-commerce industry faces a slowdown in growth and worsening profitability, the vertical commerce company Ably secured an investment of 100 billion won from Alibaba in December 2024. This represents the largest single investment in the e-commerce sector since the Timaf (Timon and Wemef) incident in July of last year. This is also Alibaba's first case of acquiring equity in a Korean platform company.
With this investment, Ably has been recognized with a corporate value of 3 trillion won, attaining unicorn status as a startup valued at over $1 billion.
On the 16th, industry insiders noted that Alibaba chose Ably due to its unique business model. Since launching its mobile app in 2018, Ably has established itself in the market by creating sellers directly. While the existing open market model is based on the autonomy of sellers, Ably handles all distribution processes such as product planning, inventory management, delivery, and returns through the platform.
For instance, if an influencer seller uploads a photo using Dongdaemun products, Ably takes care of everything else. At that time, it gained significant attention before influencer group buying and brand collaboration became commonplace. Ably set itself apart from other platforms by not attracting existing sellers but by creating its own sellers.
In the case of influencer sellers, they receive a certain revenue (usually around 10% of the sales amount) once a sale is made, while Ably secures operating expenses from the remaining amount. Industry evaluations highlight that this structure offers a higher margin.
Moreover, in the early stages, the policy of not charging sales commissions attracted influencers, leading to a virtuous cycle where product diversity expanded and consumers naturally increased. Additionally, Ably enhanced its artificial intelligence (AI) personalized recommendation system and expanded its business areas beyond clothing to include cosmetics, interior design, and food.
As a result, Ably surpassed an annual transaction amount of 2 trillion won last year, with revenues reaching 334.3 billion won, a 30% increase from the previous year. Through cost-cutting measures, Ably successfully turned a profit. As of January, Ably had approximately 9 million monthly active users (MAU), the highest figure among vertical commerce companies.
From Alibaba's perspective, Ably, which has a large user base, is undoubtedly attractive as a foothold for entering the Korean e-commerce market. Alibaba believes that Ably could be the fastest route to gain control among platforms in Korea other than 'TikTok.' Furthermore, it can learn about Korean consumer trends, data, and distribution structures through this rapidly growing platform centered around Generation Z women.
For Ably, this investment not only secures funding but also formalizes its unicorn status, providing an opportunity to enhance its value in both domestic and international investment markets.
However, there is also a perspective that risks exist given that Alibaba is Chinese capital. There are concerns that domestic sentiments and governance issues may become controversial in the future.
The spread of competitive content commerce also poses a threat to Ably. Platforms like YouTube Shopping, which allow influencers to distribute products directly without using a platform, have emerged, creating a situation where Ably could lose its competitiveness.
Jang Min-kyung, a director at MMP, which specializes in mergers and acquisitions (M&A) in the fashion and consumer goods sectors, said, "As the selection process between platforms intensifies, this is a meaningful case of a domestic fashion platform connecting with a global strategic investor. In the future, corporations like Ably that have solid user bases and results will seek greater opportunities abroad."