South Korean trading firm SK Networks Co. made a significant announcement on Monday as it confirmed the completion of its 28-billion-won ($20.7 million) investment in the domestic pet care startup BMSmile.
Through this strategic investment, SK Networks acquired a 10% ownership stake in BMSmile by purchasing 135,811 new shares, thereby becoming the second-largest shareholder in the company.
BMSmile stands out as the sole South Korean startup to fully integrate its corporate structure around the pet industry. Its flagship brand, Pethroom, has firmly established itself as a frontrunner in the K-pet market and engages in a diverse range of pet care-related ventures, encompassing pet litter, pet supplies, and pet technology. Additionally, the company boasts a subsidiary, “Wiggle-Wiggle,” specializing in design intellectual properties.
SK Networks Investments:
SK Networks made its investment decision based on the promising growth prospects within the pet care market. As reported by the Ministry of Agriculture, Food, and Rural Affairs, the South Korean domestic pet market achieved a size of 8 trillion won ($5.9 billion) in 2022, with a projected annual growth rate of around 10%. It is anticipated to expand to approximately 20 trillion won ($14.8 billion) by the year 2032.
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In 2022, the worldwide pet market expanded to a size of $368 billion. Furthermore, the Pet Humanization trend, which involves treating pets as integral family members, continues to grow. The average monthly cost of pet ownership has surged by 44%, rising from 91,000 won ($67.3) in 2018 to 131,000 won ($96.9) in 2023.
