With a funding round totaling 50 billion won ($38.4 million), Seoul-based agritech startup, Green Labs, has secured debt financing from two investors. The new investment comes just one month after the startup laid off around 70% of its workforce in February as part of a restructuring. CEO Kim Seung Joung said that the company is looking to use the new capital to expand into new markets and product lines.
Sanghoon Shin, CEO of Green Labs, said that the company’s headcount has increased significantly since it merged with its subsidiary companies last year. He added that the company’s selling, general, and administrative expenses have been drastically reduced as a result of this merger. The CEO stated that this strategy is likely to continue into the future as Green Labs focuses on expanding its business in North America and Europe.
Farm Morning is a digital innovation that helps farmers in the agricultural value chain to digitize the farm business. The company’s Farm Morning app aggregates data from farms, including crop yield, weather conditions, and field movements. This information is processed by artificial intelligence which then provides Insights into the life-cycle of crops and also connects farmers with one another for sharing knowledge and resources.
Since its launch in 2021, the app has tripled the number of farmers using it in South Korea. The app is built to help farmers connect with each other and sell their produce, and it has ambitions to be a LinkedIn for Farmers.
Factoring is an important business model because it allows companies to pay their suppliers earlier and receive the money later, which can avoid late payments and build trust between companies. However, Green Labs ran into trouble when it began expanding its factoring service too quickly. This caused the startup to become overextended, and as a result, it filed for bankruptcy last month. In order to rebuild itself, Green Labs plans to focus on its core business model and reduce its reliance on outside services.
In the days leading up to Legoland’s default, South Korean suppliers were unable to get financing from financial firms owing to increased market uncertainties. This freeze led many companies in the country to reduce their productions and shipments, exacerbating the country’s deepening recession.
GreenLabs, a startup that borrows money to buy credit sales as collateral, ran into trouble with its lender Lotte Card last year. The company had to go through with restructuring and layoffs as a result.
Despite the disappointing sales figures, SHIN is still one of the larger companies in its field. The company is looking to expand its operations and continues to develop new technologies. With plans to generate $230 million in sales by 2023, SHIN looks set to continue growing well into the future.
Shin said that the expansion of the farm morning app’s business into South Korea and Japan will help it to gain a larger following among farmers and buyers. The app is currently available in Korean and Japanese, but Shin plans to expand its reach by creating additional languages. By doing this, he hopes to make the app more accessible to a wider audience, as well as provide them with an easier way to buy produce from local farms.
Farmers Business Network (FBN) is a global alliance of farmers and agricultural businesses. The organization was founded in 1992 and has more than 2,000 member companies from more than 50 countries. In addition to its membership dues, the network offers a variety of services
Ever since the company’s initial funding, its two largest shareholders have been BRV Capital Management and Skylake. This puts them in a strong position to influence Green Labs’ future decisions, and some analysts have said that they may attempt to take over the business entirely. With so many stakeholders involved, it will be difficult for one individual or group to control Green Labs completely.