Cafe24 Corp

KOSDAQ:042000

Business Description

Sector

Information Technology

Industry

Technology

Headquarters

Korea KR

Employees

1 008

IPO date

Feb 8, 2018

Cafe24 Corp is a South Korean company that helps businesses sell online. It provides the software and services merchants need to set up and run e-commerce stores, including storefront tools, hosting, payment connections, marketing features, and links to shipping and other back-office services. Its customers are mainly small and midsize brands and entrepreneurs that want to sell directly to consumers through their own online shops.

The company makes money mostly by charging merchants for using its platform and related services. That can include subscription-style fees for store software, fees for payment and transaction services, and charges for add-on tools and partner services. In practice, Cafe24 sits in the middle of the online commerce value chain: it gives sellers the infrastructure to launch and manage digital stores without having to build everything themselves.

What makes Cafe24 different is that it is not an online retailer selling its own products. Instead, it is a business-to-business service provider that earns from the growth and activity of merchants on its platform. That gives it a role similar to a retail operating system, where the company benefits when more sellers choose to build and expand their businesses online.