In a bold new move to tap into South Korea’s booming mobility tech sector, UAE’s Mubadala Investment Co. and Goldman Sachs are investing a combined $700 million into Kakao Mobility, the country’s largest taxi-hailing platform.
Kakao Mobility, a key unit of Kakao Corp. (best known for the KakaoTalk messaging app), is about to undergo a major shareholder shake-up as global investors move in to snap up significant stakes.
Big Money, Big Moves
- Mubadala, the UAE’s sovereign wealth fund, is set to invest around $400 million through a Seoul-based consortium led by VIG Partners. Their target? A stake between 40% and 49% in Kakao Mobility.
- Goldman Sachs is also stepping in with a $300 million equity investment via a separate investment vehicle. This move was reportedly led by Stephanie Hui, Goldman’s global co-head of growth equity, who also led their $67M investment in Japan’s Go Inc. in 2023.
Combined, VIG and Goldman plan to inject upwards of ₩2 trillion (roughly $1.4 billion) into Kakao Mobility, including ₩1 trillion through acquisition financing.
Where’s the Money Going?
The funds will help VIG and Goldman acquire shares from several key stakeholders:
- ✅ TPG (29%)
- ✅ Carlyle Group (6.17%)
- ✅ LG Corp. (2.46%)
- ✅ Google (1.52%)
- ✅ And a slice of Kakao Corp.’s 57.2% ownership
To back this ambitious deal, VIG is tapping into its blind pool fund, with financing led by major Korean banks, including Korea Development Bank, Shinhan Bank, and Woori Bank.
Challenges on the Road
Despite the scale of the investment, the deal is not without roadblocks:
- Some investors have raised concerns over the ₩6 trillion ($4.4 billion) valuation of Kakao Mobility, which they feel may be inflated.
- There’s still no full agreement with existing shareholders regarding their exit strategy.
- Kakao Corp. has rejected VIG’s management buyout offer, and some local institutional investors—like KDB Investment—are opting out, citing a lack of risk protection.
A Turnaround Story
Kakao Mobility has been on a rollercoaster. After posting losses for two years, the company made a strong comeback in 2024:
- ✅ ₩28.9 billion net profit, compared to a ₩124.2 billion loss in 2023
- ✅ ₩93 billion in operating profit, more than double from the previous year
With solid financials and a fresh influx of capital, Kakao Mobility seems ready to gear up for its next growth phase, despite a few bumps along the way.
