Case Study- Soomgo

<10 milestones>

1. 2015: Soomgo was founded by Robin Kim in Seoul, South Korea
2. 2018: Secured 36 billion won in series A funding round 
3. 2019: Secured 125 billion won in series B funding round
4. 2019: Cumulated transaction value exceeded 20 billion won
5. 2019: Being chosen as ‘Best self-improvement app of the year’ by Google Play
6. 2021 June: Soomgo secured 30 billion won ($28.6 million) in a Series C funding round.
7. 2021: The company saw its revenue surge by over 160% compared to the previous year.
8. 2021 February: Soomgo released an instant quote service that automatically matches users with service providers based on their preferences.
9. By 2021, Soomgo had expanded its offering to around 1,000 services, including interior design, pet training, cleaning, IT, tutoring, and sports.
10. 2021: Soomgo’s total funding raised reached around 50 billion won (including the Series C round

<Business model>

Soomgo, founded in 2014 and based in Seoul, South Korea, operates as a local services marketplace that connects service providers with customers across over 1,000 different services, including interior design, pet training, cleaning, IT, tutoring, and sports. Soomgo uses an algorithm to match users with service providers based on their preferences, and in February 2021, it introduced an instant quote service to automate this process. Soomgo has seen significant growth, with its revenue surging by over 160% in 2021 compared to the previous year. The company secured 32 billion won ($28.6 million) in a Series C funding round in June 2021, bringing its total funding to around 50 billion won. Soomgo aims to help freelancers and small business owners by providing a platform to find clients and run successful businesses. 

<Key success factors>

Soomgo’s critical success factors include its diverse service offerings across more than 1,000 categories, its effective matching algorithm that connects service providers with customers, and its significant market growth, evidenced by securing series A, B, and C funding from 2018 to 2021. The platform’s focus on helping freelancers and small business owners find clients has addressed a need in South Korea’s traditionally conglomerate-driven culture. Soomgo’s revenue model, which includes service provider fees through purchasing “coins” or credits to send quotes and messages to potential clients, has contributed to its financial success. The company’s ability to adapt to market trends, such as increased demand for home services during the global pandemic, has also played a role in its growth.

<My suggestion for growth strategy>

Soomgo faces competition from rival companies like ‘Kmong’ in the Korean service-matching market. To promote future growth, Soomgo could focus on expanding and diversifying its legitimate service offerings beyond its current 1,000 categories to differentiate it from competitors. Moreover, improving its matching AI algorithm could enhance user experience and efficiency. Furthermore, leveraging their goal of helping freelancers and small business owners, Soomgo could create a mentorship platform where experienced professionals guide newcomers, fostering community and loyalty.