This article was published on Feb. 3, 2025, at 5:35 p.m. on the ChosunBiz MoneyMove site.
Bank Salad, considered a potential leader in the fintech industry, has begun the initial public offering (IPO) process, but it is expected to be challenging for financial investors (FIs) to recover their investments. Bank Salad has recorded operating losses for five consecutive years, and the surge in its valuation during the investment process is likely to become a boomerang.
According to the investment banking (IB) sector on the 3rd, Bank Salad has recently selected Mirae Asset Securities as its lead underwriter and has started serious preparations for the IPO. It aims to be listed on the KOSDAQ in the second half of 2026. Bank Salad appears to plan to improve its performance significantly this year and then seek market evaluation.
Although it has selected an underwriter, it faces challenges in securing a valuation of over 600 billion won in the market. In the Series D funding round held in 2022, Bank Salad received 135 billion won in investments from SKS Private Equity (PE) and KT, among others, and was valued at 600 billion won.
To avoid losses for these investors, Bank Salad must achieve a minimum valuation of 600 billion won upon listing. Kbank, an internet bank, also attempted to enter the stock market at a lower valuation than the demand forecast from institutional investors, but it faced opposition from existing investors and withdrew its IPO plans earlier this year.
Even if the valuation is met to go public, it is expected to be difficult for investors to recover their funds in the short term, as stocks cannot be sold for a certain period after listing. There is a possibility that the stock price could plummet immediately after listing, which could result in investments being locked in for an extended period. Major shareholders or related parties cannot sell shares of the company for six months from the listing date.
◇ Performance improvement, but still in the deficit swamp
Bank Salad's performance is improving, but it has not been able to escape the deficit swamp, making a valuation of 600 billion won still challenging. Revenue has grown from 3.4 billion won in 2021 to 4.3 billion won in 2022, 6.7 billion won in 2023, and a cumulative total of 13.3 billion won by the third quarter of 2024.
The net losses have continued for over five years. The net losses recorded are ▲ 17.7 billion won in 2019, ▲ 27.1 billion won in 2020, ▲ 41.8 billion won in 2021, ▲ 45.5 billion won in 2022, and ▲ 23.5 billion won in 2023, with a net loss of 10.8 billion won recorded by the third quarter of 2024, making a profitable turnaround virtually impossible by 2024.
Including the Series D investment, Bank Salad has raised a total of 198.9 billion won in funding so far. It began with seed funding of 1.9 billion won in 2015, followed by participation from KB Investment and Kiwoom Investment in a 3 billion won Series A investment in 2017.
Following that, it secured 14 billion won in Series B funding from Company K Partners and Atinum Partners, and in the Series C investment conducted in 2019, it secured 45 billion won from IMM Investment and Stonebridge Ventures.
Launched in 2013, Bank Salad is a platform that consolidates scattered financial assets based on data, allowing for management in one place. It has garnered attention as a potential unicorn in the fintech sector, along with Toss. As of last year, the cumulative downloads of the application (app) reached 14 million. CEO Kim Tae-hoon holds a 28.44% equity stake, with major shareholders including SKS PE (21.25%) and KT (5.59%).
Meanwhile, Bank Salad achieved a 'monthly breakeven point (BEP)' in November of last year, marking its first profitable turnaround since the official introduction of my data in 2022. A Bank Salad representative noted, "We have demonstrated continuous quantitative growth over the past few years, so there are no concerns regarding the valuation at the time of listing," adding, "We have reached a consensus with shareholders on being evaluated at an appropriate market value."