This article was published on March 9, 2025, at 10:29 a.m. on the ChosunBiz MoneyMove site.
The fashion brand 'City Breeze,' known for its so-called 'wrinkle-free' shirts, is undertaking a pre-initial public offering (IPO) to attract investment. The company aims to expand its overseas market starting with its entry into Japan this year, with plans to list on the KONEX market next year.
According to the venture capital (VC) industry on the 9th, Eastend plans to raise 13 billion won in pre-IPO investment and is intensifying contact with institutional investors. This comes about two years after attracting 5 billion won in Series B investment at a corporate valuation of 55 billion won in May 2023.
Founded in 2016, Eastend has internalized all processes from design to production and sales, gaining popularity among young people with its 'value for money' clothing. Its flagship brand, City Breeze, is considered a next-generation mega brand in K-fashion, following 'Matengkim' and 'Mardi Mercredi.'
The fashion brands Matengkim and Mardi Mercredi, operated by Piece Piece Studio, are gaining attention as K-fashion hopefuls in the trillion-won category, connecting with the K-beauty market. Both brands have received significant interest in domestic and international markets, surpassing annual sales of 100 billion won.
Eastend has adopted a method of producing small quantities of various designs and has its own brand called 'Atide' in addition to City Breeze. Last year, it generated 23 billion won in sales from City Breeze alone. Total sales reached 30.1 billion won, a 52% increase from the previous year's 19.8 billion won.
Eastend plans to use the pre-IPO investment to embark on a full-scale overseas expansion. It has also planned to establish a local corporation and logistics infrastructure in Japan. The company has also set its sights on entering China and Taiwan within the year. It aims to expand its scale through overseas advancement and list on the KONEX market next year.
The investment attraction appears to be progressing smoothly. Existing investors BNK Venture Investment and Capstone Partners have confirmed their participation in the pre-IPO. Additionally, Kyobo Securities and Hyundai Investment Partners have decided to make new investments, reportedly securing about 6 billion won.
A source in the VC industry noted, 'K-fashion meets both key investment indicators—sales growth and overseas expansion—that VCs look for.' He added, 'Particularly, K-fashion, like K-beauty, is gaining popularity across Asia due to the Korean Wave.'
In fact, investments are being concentrated in fashion brand operators. The first fundraising for Piece Piece Studio attracted 50 billion won, while Eye Eye Combine, better known for 'Gentle Monster,' received 60 billion won from both domestic VCs and Louis Vuitton Moët Hennessy (LVMH).