Korean Startups Join Forces to Take on Family-Run Conglomerates
- Yello has built a coalition to thrive against conglomerates
- Its largest unit is keen to go public in three years
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Sometimes you need a bunch of Davids to take on Goliath. In South Korea, where family-run conglomerates such as Samsung dominate just about every aspect of life, one startup thinks it’s found just such a formula to break their hold.
Yello Mobile Inc., a cross between Rocket Internet and Y-Combinator, is building a coalition of up-and-comers to take on the nation’s chaebol. It’s invested in more than 60 startups in areas from online shopping to digital media, assembling an alliance of businesses last valued at $4 billion. They pool resources and customers, share costs, and help each other out on everything from payments to delivery.