AutoHands, a South Korea-based mobility company that entered digital auto retailing in February, has secured KRW15.5 billion ($10.9 million) in pre-IPO funding.
The company selected Mirae Asset Securities as the lead underwriter in March, with a listing on Korea Securities Dealers Automated Quotations (Kosdaq) expected next year, according to a company news release.
The funding round included five investors: IBK Capital, Infobank Partners, YG Investment, Cornerstone Investment Partners, and Mirae Asset Securities.
AutoHands plans to use the capital to expand its directly-operated stores, strengthen online operations, develop AI and big data-based services, and hire new employees.
According to investment tracker TheVC, this marks the first publicly disclosed investment for AutoHands.
Founded in 2013, the company offers integrated mobility services, including vehicle buying and selling, management, online used-car auctions, car rentals, extended warranties, residual value guarantees, mobile maintenance, and accident compensation programs.
AutoHands reported KRW173 billion (approximately $122 million) in sales for 2024, reflecting steady year-over-year growth from KRW112 billion in 2023, KRW77.6 billion in 2022, and KRW45.9 billion in 2021. For comparison, used-car ecommerce market leader KCar generated $1.6 billion in revenue last year by selling 154,185 certified pre-owned vehicles.
“This pre-IPO investment highlights AutoHands’ solid growth potential and the market’s confidence in our differentiated, customer-centric services,” said CEO Kim Sung Joon. “We will leverage the funding to enhance our AI capabilities and expand our offline network, securing competitiveness and advancing as a comprehensive mobility solutions provider.”
