Online financial group SBI Holdings invested $30m in South Korea-based mobile internet company Yello Mobile yesterday.
The funding was supplied as an extension to the $43m of convertible debt financing Yello raised in December 2015. That round, led by venture capital firm Formation 8, valued Yello at $4bn.
Founded in Seoul in 2012, Yello Mobile operates a range of mobile platforms, apps and services across Asia, covering online retail, media, advertising, travel and online-to-offline offerings.
The investment follows the formation of a strategic partnership between Yello and SBI in December 2015. SBI agreed to provide access to its resources as Yello expands in Japan and Southeast Asia, while Yello’s financial services subsidiary will support SBI’s fintech business in Korea.
Yello intends to increase the size of the round over the coming months and expects to raise additional funds from existing investors including SBI and presumably Formation 8.
In addition to its December 2015 investment, Formation 8 provided just over $100m in capital to the company in November 2014 at a $1bn valuation.
Yoshitaka Kitao, president and CEO of SBI Holdings, said :“We see substantial opportunities for the company to expand both at home and abroad, and we share Yello Mobile’s vision of creating a dynamic mobile system across Asia.
“We are excited to support the company’s continued growth while leveraging Yello’s unmatched digital marketing expertise and loyal customer base to enhance SBIH’s own offerings. Starting with this investment, we will deepen our strategic business collaborations and drive sustainable growth for us and for Yello Mobile.”