[Upcoming IPO] Korean streaming service Watcha secures funding to join global players like Netflix
Kyeong-je Han
Jul 23, 2020 (Gmt+09:00)
Watcha, a Korean streaming platform, is gearing up to tap into Japan and Southeast Asian markets following the completion of Series D funding worth 19 billion won ($16 million). The company will begin providing services in Japan this September, then dive into Southeast Asia starting in June 2021.
The company is also preparing to go public as early as 2021, according to industry sources. The proceeds will be used to further boost the company’s global operations. Watcha has selected NH Investment & Securities as the initial public offering manager to get listed on the tech-heavy KOSDAQ market.
The company's pre-IPO value is estimated to be near 130 billion won ($109 million). The company has yet to announce official plans.
Watcha was founded in 2011 by Taehoon Park, the chief executive officer, while he attended KAIST, a leading science and tech university located in Daejeon, South Korea. Park was keen on the concept of customizing all types of services which led to the creation of Watcha, a curation service that recommends movies based on users’ preferences, reviews, and ratings.
The service was a big success in Korea, accumulating over 500 million reviews and ratings. It outperformed online giant Naver which has over 100 million movie reviews as well as the leading multiplex chain CJ CGV which has over 230 million movie reviews.
Watcha laid out the framework for streaming platform WatchaPlay which launched in 2016. The new over-the-top (OTT) service offering about 80,000 domestic and foreign shows pushed the company to grow at a faster pace, with nearly 1 million users and over 5.7 million downloads.