Popokii Secures Pre-A Funding from Z Venture Capital to Expand Gift Market

Popokii's Growth and New Funding

In a significant move for the online gift market, Popokii Co., Ltd. has successfully secured funding in their Pre-A round from Z Venture Capital Co., Ltd. This milestone takes place in the heart of Tokyo, where both companies are headquartered.

Founded only two and a half years ago, Popokii has demonstrated remarkable growth, achieving an annual growth rate of approximately 700% and successfully reaching profitability. The company's strength lies in its extensive network with over 100 brands focused primarily on Korean cosmetics, establishing a dominant presence in the Korean category on the LINE Gift platform.

The Importance of the Recent Funding

The recent fundraise from ZVC not only highlights Popokii's ability to procure brands and adapt strategies tailored for the Japanese market, but also indicates its potential in B2B and international expansion. Collaborating with ZVC is expected to amplify synergies with LINE Yahoo, marking a new phase of growth for the company.

A Growing Market Landscape

The market conditions surrounding Korean cosmetics have witnessed a boom, with exports to Japan projected to reach an impressive $5.11 billion by the first half of 2025, reflecting a 14.8% increase year-on-year. Notably, Korean products have comprised 28.8% of all imports into Japan for three consecutive years, solidifying their place as the leading import nation.

While the demand for Korean cosmetics continues to rise, competition in e-commerce spaces such as Qoo10 and Amazon is intensifying. Here, the concept of gifts creates a unique niche that values meaningful experiences over price, further enhancing the demand for real gifts through platforms like LINE Gift.

Future Plans for Popokii

With this in mind, Popokii aims to launch a beta version of a corporate digital gift platform (B2B) within the year. This initiative plans to digitalize shareholder benefits, employee welfare programs, and customer-related measures into a unified system, potentially defining a new standard in the estimated ¥2.7 trillion corporate gift market while greatly supporting company CRM efforts. Additionally, Popokii is committed to facilitating cross-border expansions of Japanese brands into South Korea, China, and Taiwan, while boosting sales through major domestic channels like LINE Gift, Yahoo! Shopping, and TikTok Shop.

The CEO of Popokii, Kim Ju-hyung, expressed, "Popokii seeks to refine the culture of gifting and provide innovative value that connects people to people." He indicated that the investment would harness the robust synergy with ZVC to embark on a new phase incorporating B2B and international expansion.

Insights from Z Venture Capital

Janice Sa, Principal at ZVC, shared her enthusiasm regarding the investment. She remarked, "The culture of 'digital gifting' in Korea showcases significant diversity and mature user experiences on a global scale." She is confident that Popokii's team is adept at localizing the Korean gifting experience for the Japanese market. With the rapid growth of LINE Gift, the future appears bright as Popokii expands its channels and customer demographics.

Popokii is on track to solidify its vision while leveraging this strategic funding to make meaningful advancements within the market.