This article was displayed on Dec. 25, 2024, at 7:37 a.m. on the Chosun Biz Money Move (MM) site.
Venture capital (VC) Stonebridge Ventures has expanded its K-fashion portfolio. Following last year’s investment in "Mardi Mercredi," it recently became a shareholder in the company that operates "Covernat." It praised the rapid growth of K-fashion brands.
According to the VC industry on the 25th, Stonebridge Ventures invested in BKAVE, widely known as the operator of the K-fashion brand Covernat, on the 20th, securing about 3% equity. It is understood that around 10 billion won was invested in a transaction that valued the company at approximately 300 billion won.
BKAVE, established in 2014, operates a casual fashion brand. It generated 290 billion won in revenue last year, led by the first-generation domestic street fashion brand Covernat. It earned 140 billion won solely from Covernat. Last year, the operating profit was 27 billion won, and the net profit was 21.1 billion won.
Stonebridge Ventures seems to have highly regarded BKAVE's adopted multi-brand strategy. In addition to Covernat, it has continuously introduced brands such as "Lee," "Wrangler," and "Pallete," continuing to expand its scale. This year's revenue is expected to exceed 300 billion won.
Stonebridge Ventures expects BKAVE to achieve growth similar to PiSpiS Studio, in which it previously invested. PiSpiS Studio, known for its floral-patterned T-shirts, operates the fashion brand "Mardi Mercredi," and raised 50 billion won in investments last year from Stonebridge Ventures and others.
PiSpiS Studio is currently gaining attention as a potential K-fashion powerhouse, analogous to K-beauty, due to its achievements abroad based on domestic popularity. It began expanding internationally last year, recording sales of 68.9 billion won. This reflects a 118% increase compared to 37.3 billion won in sales the previous year.
In particular, PiSpiS Studio selected NH Investment & Securities and Mirae Asset Securities as lead managers in July, aiming for an IPO in 2026. If the listing occurs, a significant exit for Stonebridge Ventures is expected. Its valuation at the time of investment last year was 150 billion won.
BKAVE has also decided to pursue international expansion for its flagship brand, Covernat. Leveraging its status as a mega brand with annual domestic sales exceeding 100 billion won, it plans to enter Taiwan next year. Additionally, it has confirmed entry into major shopping malls in regions such as Thailand and Macau through total distribution contracts in Asia.
A source in the VC industry noted, "K-fashion startups are meeting both overseas expansion and profitability, which are indicators currently favored by VC investors," adding, "Starting with Stonebridge Ventures' investment in BKAVE, VC investments in K-fashion startups are expected to increase."