Hankook Tire invests in e-commerce platform Carmerce

Hankook Tire & Technology has become a KRW 3 billion (£1.9 million) pre-Series A investor in South Korean used car e-commerce platform ‘Carmerce’. The tyre maker and start-up signed an investment contract at Hankook & Company’s headquarters on 28 February.

Introducing Carmerce, Hankook Tire says this first used car e-commerce platform in Korea enables consumers to purchase a used car in just ten minutes using their mobile device, eliminating the need to visit a physical a dealership. The entire process is carried out online, including vehicle purchase, registration, financial services and returns, allowing for a non-face-to-ace experience. Hankook adds that the Carmerce platform’s features help prevent common problems found in the used car market, such as unclear pricing, odometer rollbacks, and fraudulent sales.

Noting that Carmerce received seed investment from start-up accelerator SparkLabs last year, Hankook Tire says it “has recognised” the platform’s “growth potential and innovation” and thus invested in it. “This investment represents a significant milestone for Hankook Tire, marking the company’s first-ever lead investment in a startup and imbuing it with even greater significance.”

Carmerce plans to use the funds it receives to recruit development personnel and upgrade its services. The company also intends to collaborate with various financial companies to accelerate the development of used car loans. Its relationship with Hankook Tire going forward will see the two parties “build an ongoing strategic partnership to create business synergies across a range of areas,” such as platform technology development, service planning and promotions.