South Korean proptech startup Zigbang acquires Samsung SDS smart home IoT business – TechCrunch

Startups

zig bang, a South Korean proptech startup that provides real estate transactions, announced Thursday that it will acquire Home Internet of Things (IoT) unit from Samsung SDS to take a foray into the smart home industry.

Samsung SDS sold its smart home IoT division, the only B2C company to have Samsung SDS, to focus on its B2B. The main products are smart door locks and wall pads that connect to users’ smartphones.

IoT is not an easy thing because the margins are thin at best, so a player looking to participate in it for the long term is bragging to its rivals in an effort to gain more economies of scale.

The startup expects to create technology synergies and increase its market share by acquiring the smart home IoT business.

“By combining Zigbang’s residential content with Samsung [SDS]”home IoT hardware, we will revolutionize the smart home market,” Zigbang CEO Sung-woo Ahn said in a statement.

The acquisition will enable Zigbang to enter the global smart home markets and accelerate its growth as Samsung SDS’s IoT unit currently generates solid revenues in more than 16 countries, Zigbang vice president Sunwoong Lyuh told TechCrunch.

The startup, which signed the acquisition agreement yesterday, aims to complete the deal in the second quarter of this year, Lyun said. According to media reports, the company declined to comment on the valuation of the acquisition agreement, but it is valued at $85 million (KRW 100 billion).

Zigbang wants to use technology to digitize everything about living space, from real estate transactions to smart home devices. The company also plans to introduce self-storage and home inspection and repair services.

Zigbang has been engaged in an acquisition expansion since 2018.

The startup acquired HogangNoNo, a Korean proptech startup, in 2018, WooZoo, a co-living platform, and Sugarhill, a commercial brokerage platform, in 2019. It also completed an acquisition of Movill, a residential management services platform, last year.

Zigbang claims a total of 33.5 million users with 8.1 million monthly active users. It currently has 600 employees.

It reached a valuation of $574.2 million (KRW 700 billion) won in July 2019 when it raised the latest funding of $132.5 million (KRW 160 billion), bringing its total funding to date to $187.7 million ( KRW 226.5 billion). Zigbang was valued at $908 million (1.1 trillion won) in June 2021, according to a report released yesterday by South Korea’s ministry of SMEs and startups.

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