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Retail tech company Culley reported its highest quarterly performance since its founding in the first quarter of this year.
Culley announced on May 11 that its consolidated operating profit for the first quarter reached 24.2 billion won, a staggering 1,277% increase compared to the same period last year.
During the same period, revenue grew by 28.4% to 745.7 billion won. The company also reported a net profit of 20.3 billion won, marking a return to profitability. The total gross merchandise volume (GMV) for the first quarter hit a record high of 1.08 trillion won, reflecting a 29% increase year-over-year.
Considering that the domestic online shopping transaction growth rate for the first quarter, as reported by the National Data Agency, was 9.7%, Culley’s growth rate significantly outpaces the industry average.
Culley attributed its success to the growth in its core fresh and beauty sectors, as well as diversification efforts including seller delivery (3P), fulfillment services (FBK), and Culley N-Mart.
The transaction volume in the food category for the first quarter increased by 27.8% compared to the same period last year. The beauty segment also saw a 20.2% growth, driven by strong sales of luxury beauty products and the rise of indie brands.
Seller delivery, which includes fulfillment services, surged by 52.6%, contributing to the overall improvement in performance. Strategies to differentiate fashion and living products, along with enhanced logistics service competitiveness, also played a role in this growth.
Culley N-Mart, which launched in September last year, quickly gained traction, with transaction volume in March increasing nearly ninefold compared to its initial launch.
Logistics innovation has been crucial for improving profitability. In February, Culley introduced a new delivery service called 'Midnight Star Delivery,' which guarantees delivery by midnight for orders placed before 3 p.m. This addition, alongside existing early morning delivery options, has enhanced logistics operational efficiency.
Furthermore, long-term enhancements at logistics centers in Gimpo, Pyeongtaek, and Changwon have begun to yield cost savings this quarter. The gross profit margin for the first quarter improved by 0.8 percentage points to 33.1%, while the selling and administrative expense ratio decreased by 2.2 percentage points, strengthening the company’s profit capacity.
In conjunction with the earnings announcement, Culley’s strategic alliance with Naver has garnered attention. On May 6, Culley conducted a third-party allocation capital increase worth 33 billion won for Naver. Following this investment, Naver's stake in Culley increased to 6.2%, valuing the company at 2.8 trillion won.
Culley plans to utilize the 33 billion won raised from this capital increase as a solid foundation for long-term growth. Specifically, the funds will be used to further enhance logistics infrastructure, which is critical for delivery competitiveness, and to finance new business initiatives aimed at discovering future revenue streams.
Kim Jong-hoon, Culley’s Chief Financial Officer, stated, "Through consistent efforts in product, logistics, and technology, we have differentiated the customer experience, and our attempts at business diversification to secure new growth drivers are now showing results from the first quarter."
He added, "Having demonstrated both growth and profitability through the establishment of a clear business model that a differentiated technology platform company should have, we plan to solidify and accelerate our IPO roadmap."
* This article has been translated by AI.
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