Alibaba invests $71.4 million in South Korea's Ably Corp, creating new unicorn

In December 2024, Alibaba Group Holding Ltd made a significant investment in the South Korean apparel brand Ably Corp, contributing $71.4 million, which equates to around 100 billion Korean won. This investment elevated Ably’s valuation to approximately 3 trillion won, or $2.1 billion, making it the first unicorn startup in South Korea for the year 2024. Prior to this round, Ably had a valuation of 900 billion won after its pre-Series C fundraising round in early 2022, highlighting the impressive growth trajectory of the company. This marks a pivotal moment for both Alibaba and the South Korean startup ecosystem as it represents Alibaba's first equity investment in a Korean shopping application. The increase in valuation for Ably Corp signifies not only its rising prominence in the apparel sector but also reflects broader trends within the South Korean market, where technology and retail are converging rapidly. Prior to Ably’s achievement, Naver Corp’s Kream Corp was the latest startup to reach unicorn status in December 2023, showcasing the competitive landscape of Korean startups and their potential for high valuations. As valuations soar, the implications for investment patterns and consumer behavior will be noteworthy as well. Alibaba's investment coincides with a period of strategic growth for the e-commerce giant, which is diversifying its international portfolio. Following recent trends in the South Korean market, where digital shopping applications are increasingly popular, Alibaba's entry is seen as a crucial move to capture this growing demographic. The overall investment strategy reflects Alibaba’s aim to bolster its position within the region while supporting promising local startups. The positive momentum for both Alibaba and Ably suggests a potential for more collaborative ventures in the future. As Alibaba maintains stakes in various companies, including XPeng Inc. and Weibo Corp, its proactive investment in Ably signals confidence in the performance of Korean startups. The consensus price target for Alibaba shares has been optimistic, suggesting strong market sentiment around its growth potential. This deal emphasizes the ongoing trend of international investments fueling local innovations, and Ably’s success could inspire a wave of further investment into South Korean tech and retail startups, making it a milestone moment for the country’s economic landscape.