Megazone Cloud lands pre-IPO round from Neowiz Partners ahead of listing
What's the deal? Megazone Cloud, a South Korean AI and cloud computing company, has secured a pre-IPO investment from Neowiz PartnersDealroom has a profile for this one. Try Dealroom →, the investment arm of Neowiz HoldingsDealroom has a profile for this one. Try Dealroom →. The late-stage deal takes the form of an unconditional purchase of common shares.
Why now? Megazone Cloud is preparing to go public, and the round is meant to smooth that path. "We will actively support Megazone Cloud so that its listing proceeds successfully on the back of this investment," said Neowiz Partners chief executive Kim Sang-wook.
What's the endgame? The company said it will use the proceeds to build future growth engines, including AI and security. Neowiz backed it after rating "the unrivaled competitiveness of the AI and cloud business that Megazone Cloud operates and its growth potential in AI transformation," Kim said.
By the numbers: Megazone Cloud raised 48 billion won in a 2019 Series A, then 190 billion won across two Series B rounds in December 2020 and June 2021. KT invested 130 billion won as a strategic investor in 2022, the same year the company closed a 450 billion won Series C.
In June this year, parent company Megazone took an 800 billion won investment from Glenwood CreditDealroom has a profile for this one. Try Dealroom →. It used the funds to buy out Megazone Cloud stakes held by existing financial investors, lifting its holding to 72%.
What the founder says: "This new investment carries significant meaning in that the growth potential and future value of our business have been recognized," said chief executive officer Yeom Dong-hoon. "We will continue our efforts to strengthen our fundamentals in order to accelerate shared growth with our investors."
The signal: The deal underscores Megazone Cloud's rising prominence as it positions for a listing on the strength of its AI and cloud business. Fresh late-stage capital from a strategic backer signals investor confidence in Korea's AI transformation play just before a public debut.
Read more: en.sedaily.com
Image credit: Christoph Scholz
