This article was displayed on the ChosunBiz MoneyMove (MM) site on May 27, 2025, at 8:52 a.m.
The used goods transaction platform company carrot is experiencing rapid growth. It is expected to record a monthly operating profit of about 8 billion won by the end of this year, which translates to nearly 100 billion won on an annual basis.
Carrot is reported to have set a final goal of being listed with a corporate value of 10 trillion won. In the financial investment industry, there is a sentiment that if carrot's annual operating profit increases to 200 billion to 300 billion won, listing at a valuation of 10 trillion won is not unfeasible. The company is also known to be keeping open the option of being listed on foreign markets such as the U.S. Nasdaq instead of insisting on a domestic listing.
According to the investment bank (IB) industry on the 27th, carrot is currently recording monthly operating profits in the range of 5 billion to 6 billion won. Considering that last year's annual operating profit was 37.6 billion won, this indicates a steep growth trend.
The growth of carrot is being driven by its advertising business. The number of advertisers reportedly increased by 37% year-on-year last year, while the amount of executed advertisements increased by 52%, according to the company. Annual advertising revenue rose by 48% within a year. Notably, it is reported that the conversion rate for job advertisements is high.
Investors in carrot expect that its monthly operating profit could increase to 8 billion won within this year. In this case, the annual operating profit would become 96 billion won, approaching 100 billion won.
An IB industry insider noted, "If the operating profit surpasses 100 billion won, it would be conceivable to see it increase to 200 billion or 300 billion won." Carrot is currently striving to generate revenue overseas, such as in Canada, and the consensus is that if it starts earning revenue in those markets, its growth rate will accelerate even more. Currently, carrot aims to achieve 1 million monthly active users (MAU) in Canada as a short-term goal, with the next target being the United States.
Due to this atmosphere, carrot stocks are consistently trading at high prices in the unlisted stock market. Recently, some of the old shares held by the initial investor Kakao Ventures have been put up for sale, with trading prices reportedly ranging from 2.5 trillion to 2.7 trillion won based on corporate value.
When it received its last new stock investment in 2021, its corporate value was 3 trillion won, and considering that the valuations of other unicorn companies have significantly decreased since then, it seems that high expectations for carrot remain intact. Kakao Ventures is one of the investors holding a significant stake in carrot. While the exact equity stake of Kakao Ventures is not disclosed, it is known to have a substantial number of shares as it invested 500 million won when carrot's corporate value was 8 billion won.
The reason shares are selling like hotcakes even at prices of 2.5 trillion to 2.7 trillion won is that the market sees high growth potential for carrot. The company's outlook is also optimistic. According to industry sources, it is reported that internally, carrot expects its corporate value to reach 10 trillion won upon listing.
Of course, this is not an easy calculation. If we assume an annual operating profit of 300 billion won, a price-to-earnings ratio (PER) of about 33 times would need to be applied for it to be recognized at a valuation of 10 trillion won.
An IB industry insider said, "If carrot establishes itself as a 'national app,' applying a PER of 50 times is not out of the question," adding that, "In the case of Coupang listed on the New York Stock Exchange, the PER reaches 100 times, so if carrot lists on Nasdaq, it could potentially receive even higher valuations."
In the IB industry, there is certainly a view that carrot is likely to capture market share from vertical platforms that target specific product categories or consumer interests. Carrot is providing services for businesses traditionally managed by vertical platforms, such as used car sales and real estate brokerage, all within a single platform. Additionally, since its local advertising performance is strong, investors are hopeful for its potential to grow into the 'next Naver.'
On the other hand, there is also a perspective that comparing Coupang and carrot is unreasonable. A venture capital (VC) insider stated, "Coupang has annual sales of 40 trillion won and is at a level where there is no substitute platform," adding, "Carrot is not an app that you can't live without, is it?"
Another industry insider remarked, "The appropriate PER for internet platforms is at best 30 times, so to be recognized at a valuation of 10 trillion won, it would need to generate at least around 300 billion won in operating profit," and questioned, "If there is confidence that corporate value will rise to 10 trillion won, why would existing investors sell their equity at a valuation of 2.7 trillion won?"