Naver Z invests in multiple metaverse-related startups to beef up Zepeto
Joo-Wan Kim
Mar 23, 2022 (Gmt+09:00)
South Korea's homegrown metaverse platform Zepeto, operated by Naver Z Corp.
Naver Z Corp. invested in more than eight companies so far this year, according to people familiar with the deals. Naver Z is the operator of Asia’s largest metaverse platform Zepeto.
The acquired companies range from game developers to smaller metaverse platforms.
In January, the metaverse arm of tech juggernaut Naver Corp. purchased a 33.33% stake in Pinocchio, which it jointly developed with mobile game developer LunoSoft, for 4 billion won ($3 million).
Around the same time, the Zepeto operator also injected a billion won into Persona Space. The company creates content for the metaverse, most notably avatars of celebrities and virtual humans.
Recently, it invested somewhere between 200 million and 1.8 billion won in each of these companies: an AI solutions provider; content creator Metaspace Company; and music content startup SSONG Company.
Industry insiders hope metaverse platforms can help teleworking feel less isolated.
GOING ABROAD
Naver Z acquired a 5.29% stake in Singapore-based blockchain developer Haderech for 1 billion won.
The Naver group subsidiary invested in another Singapore-based software provider Good Gang Labs Pte. and US-based mobile game developer Brave Turtles, Inc.
Media reports say it recently invested in KlayCity. The company operates Klaycity District, a virtual world powered by Kakao Corp.’s global public blockchain project known as Klaytn.
In addition to mergers and acquisitions, Naver Z is also setting up local offices abroad.
Last August, it established a US corporation and set up a Hong Kong entity in January of this year.
Its metaverse platform Zepeto is showing consistent growth with the accumulated user number exceeding 300 million earlier this month. Naver’s Zepeto has more than 20 million monthly active users around the globe – the highest figure for a metaverse platform developed in Asia.
Zepeto is far behind the No. 1 global platform Roblox, however, which boasts 150 million monthly active users.
The Korean platform also needs to diversify its user base, as 70% of its users are based in Greater China.
Naver Z is forecast to continue the aggressive investments, thanks to ample liquidity. The company received 220 billion won worth of funds from the SoftBank Group Corp., Mirae Asset Capital, HYBE Co. and JYP Entertainment Inc. last December.
Write to Joo-Wan Kim at kjwan@hankyung.com Jee Abbey Lee edited this article.