This article was published on March 10, 2025, at 4:45 p.m. on the ChosunBiz MoneyMove website.
Comprehensive delivery platform Manna Corporation notified investors who exercised their stock purchase rights (put options) of their inability to pay (default). Domestic venture capital (VC) and strategic investors (SI) that invested nearly 100 billion won have agreed to further postpone the repayment period and are planning to monitor Manna Corporation's movements. Nevertheless, investors are reportedly examining the company's rehabilitation procedure application, considering the worst-case scenario of failing to recover their funds.
According to the investment banking (IB) industry on the 10th, investors, including payment service provider Danal, received notices of payment inability regarding the exercise of put options from Manna Corporation. Currently, Danal has changed the payment deadline to August 27, and has sent a letter demanding payment, including the urgency of payment.
A representative from Danal stated, "After receiving a confirmation that payment to Manna Corporation is impossible, we sent a letter demanding payment with an extended deadline and urged payment," and noted, "We revised the payment claim date considering Manna Corporation's financial situation and business details." As the payment timing was postponed, the amount Manna Corporation owes Danal has increased from 57.7 billion won to 62 billion won. This amount considers the invested total of 35 billion won and the agreed internal rate of return (IRR) of 15%.
However, investors believe there is no possibility of payment by Manna Corporation even by the newly set deadline. This is because Manna Corporation is already in a state of complete capital erosion and is finding it difficult to secure cash through operations. To respond to the large-scale put options, Manna Corporation can only seek additional investments. Accordingly, investors have reportedly depreciated significant amounts after consulting with limited partners (LPs). Danal reduced the book value of Manna Corporation from 35 billion won to 13.4 billion won as of the end of September last year.
Established in 2014, Manna Corporation is a platform company that integrates seven delivery agency services. It provides order management and settlement services through its subsidiary, Manna Planet, and has expanded its business scope with POS and payment services. The company collects delivery fees from merchants upfront in the form of credits and deducts from these credits each time a delivery agency service is used to pay the riders.
Manna Corporation experienced rapid growth during the COVID-19 pandemic due to a surge in demand for delivery services. Revenue increased from 139 billion won in 2020 to 271.9 billion won in 2021. However, rising labor costs and increasing competition, as well as goodwill impairment costs due to mergers of delivery platforms, led to net losses. The scale of net losses grew from 2.2 billion won in 2020 and 6.6 billion won in 2021 to 22.4 billion won in 2022. As of the end of 2023, according to the disclosed audit report, the accumulated losses amount to 55 billion won, putting the company in a state of complete capital erosion.
Investors are reportedly considering filing for corporate rehabilitation or bankruptcy procedures as a last resort. This is due to the fact that most investors have invested in Manna Corporation's redeemable convertible preferred stock (RCPS) and bonds with warrants (BW), which provides at least some chance of recovering their investments. Major investors in Manna Corporation include Danal, Korea Investment & Securities, IBK Corporate Bank, Korea Investment Partners, Bailey PE, and IBK Securities, who are reported to have invested over 100 billion won combined.
An industry official noted, "I understand that various options are being reviewed for recovering investments in Manna Corporation," and explained, "The last resort methods, including selling the company through the corporate rehabilitation application or asset distribution through corporate liquidation, are also being considered."