Despite turning to a deficit last year, domestic unmanned ordering company t'order is in the spotlight as rumors of a management stake sale have arisen, raising questions about whether it can preserve its previously assessed corporate value of 300 billion won. Although it has grown to become a leader in the 'digital transformation of the dining industry,' achieving profitability and improving revenue will become key tasks in future corporate value assessments.
According to investment banking (IB) industry reports on the 3rd, over 50% of the equity held by t'order founder Kwon Seong-taek is under review for sale. Domestic private equity fund (PEF) firms are being mentioned as potential acquirers. The selling price is speculated to be over 300 billion won based on the total equity value. However, t'order stated, "While there have been proposals for collaboration, we are not at a stage where we are specifically pursuing a sale," reflecting a cautious stance.
t'order experienced rapid growth during the COVID-19 pandemic, driven by the expansion of contactless culture. However, after the endemic period, its growth has slowed down, and performance has worsened. Last year's revenue was 57.2 billion won, a 4% decrease compared to the previous year, and it recorded an operating loss of 14.3 billion won, turning from a profit to a deficit. The net loss for the period reached 25 billion won. Due to the application of International Financial Reporting Standards (IFRS), redeemable convertible preferred stock (RCPS) and derivative liabilities were reflected, resulting in total equity of negative (-) 6.2 billion won, leading to a complete capital erosion state.
The background of the poor performance lies in the aftereffects of a 'growth-focused' strategy. Labor costs nearly doubled from 9.6 billion won to 19.6 billion won, and payment fees and marketing expenses also surged. Aggressive expansions, such as acquiring hotel platforms and establishing overseas entities, directly linked to costs, eroded profitability. The recession in the dining market contributed to a decrease in new installations and an increase in cancellation rates, adding burdens to management.
Despite these challenges, the company's value of t'order in the market is still evaluated at around 300 billion won. This is thanks to its overwhelming position as the number one player with approximately 230,000 installations in Korea and over 60% market share, along with a stable subscription fee base. The monthly subscription fee model, which accounts for over 90% of revenue, has high predictability, and the platform structure capable of expanding into advertising, data, and commercial district analysis is heightening investor expectations.
t'order is positioning its advertising business as a next-generation growth engine, investing over 40% of its workforce in research and development (R&D) to focus on enhancing its ordering and payment systems and developing a data platform. This marks a shift from a simple unmanned ordering system to an 'eating-out digital infrastructure company.' There are also possible expansions into overseas markets. In the North American and European dining industries, demand for unmanned ordering systems is rising due to increasing labor costs and workforce shortages, and the large-scale installation and operational experience validated in Korea may become competitive overseas.
As part of this expansion strategy, t'order was recently selected for the 'Jump Program' by the Ministry of SMEs and Startups and Microsoft. It received recognition for its cloud and artificial intelligence (AI)-based data analysis capabilities, which will help it venture into global markets and receive support for technological advancement. This has been evaluated as establishing a foundation for institutional and technical overseas expansion.
However, industry insiders believe there is a need for a clear breakthrough to resolve capital erosion and poor performance in the short term. With major platform companies like Baemin, Yanolja, and Toss encroaching on the market with low-cost QR ordering models, demonstrating the distinctiveness of tablet-based services will be crucial. If t'order cannot achieve a return to profitability and improve operational cash flow within the next 1 to 2 years, a reassessment of its corporate value is deemed inevitable.
Meanwhile, according to the Korea Rural Economic Institute (KREI), as of 2023, the introduction rate of unmanned ordering systems in the domestic dining industry stands at 7.8%. Considering the burden of labor costs and workforce shortages, there is an analysis suggesting that there is potential for over tenfold growth in the domestic market alone.
An industry insider noted, "If t'order successfully expands its technological collaboration with Microsoft and transitions to a profitability-centered structure, it could position itself as a sustainable platform company beyond being a unicorn."