South Korea’s Kolon Group plans to invest an additional 12.4 billion won ($9.1 million) in Papa Mobility Co.
, bringing its total investment in the ride-hailing service operator to 32.9 billion won. According to industry sources on Friday, Kolon Corp.
, a fashion-to-construction-to-mobility conglomerate, will participate in a June 6 rights offering to raise 13.8 billion won in operating funds. Founded in 2018, Papa Mobility is a ride-hailing service company for socially disadvantaged people, including the disabled, elderly, wounded and parents with babies.
The company offers door-to-door services like Papa Escort and Papa Air. Kolon has already invested in Papa Mobility three times – 6 billion won via a third-party rights offering in May 2022 to acquire a controlling stake in the ride-hailing firm, 7.5 billion won in January 2023 and 7 billion won in November 2023.
Kolon Honorary Chairman Lee Woong-yeol, who stepped down from the group’s chairmanship in 2018, personally invested in Papa Mobility, raising his stake to as much as 33.5%. His stake in Papa Mobility has reduced to 4.
2% as he didn’t participate in previous rights offerings. Once Papa Mobility’s business takes off, industry officials said Kolon Mobility Group will likely acquire control of the ride-hailing service company through a stake purchase to create synergy with its automobile services. As of the end of 2023, Papa Mobility posted 10.
1 billion won in net loss with 10.4 billion won in assets. Kolon Glob.