Japanese Sneaker Platform Soda Raises $56.4M & Acquires Monokabu

SoftBank Ventures Asia Increases Investment in SODA

Barely six months after spearheading SODA’s Series B funding round, SoftBank Ventures Asia is further solidifying its commitment to the Tokyo-based sneaker reselling platform. The venture capital firm, operating as the early-stage investment division of SoftBank Group, has announced its lead role in SODA’s Series C, which has currently reached a total of $56.4 million.

Series C Details and Participants

This funding round sees participation from several key investors. These include KREAM, a South Korean platform specializing in sneaker reselling – also a member of the SoftBank Ventures Asia portfolio – alongside Altos Ventures and JAFCO.

SODA’s Market Position and Acquisition

Established in 2018, SODA operates SNKRDUNK, a prominent sneaker reselling platform in Japan, attracting approximately 2.5 million users each month. Concurrent with this new funding, SODA has completed the acquisition of its competitor, Monokabu.

According to SODA, this acquisition elevates its market share within Japan’s sneaker resale sector to 80%, firmly establishing the company as the dominant leader.

Rationale for Continued Investment

A representative from SoftBank Ventures Asia explained to TechCrunch that the decision to reinvest in SODA stems from the company’s accelerated growth trajectory since the previous funding round. Currently, SODA’s post-money valuation stands at approximately 24 billion Japanese Yen, equivalent to around $218 million.

Expansion Plans into Southeast Asia

A portion of the Series C funding will be allocated towards expanding SODA’s reach into new Asian markets. The initial focus will be on Indonesia and the Philippines, slated for next year.

These countries were selected due to their burgeoning e-commerce landscapes and substantial Generation Z populations, presenting an optimal environment for SNKRDUNK’s continued success.

Previous Funding and Market Trends

SODA’s prior funding round, a $22 million Series B, was finalized in January. At that time, CEO Yuta Uchiyama conveyed to TechCrunch that sneaker demand remained robust despite the economic challenges posed by the pandemic.

He also noted that the increased adoption of online shopping significantly contributed to sales growth.

Record Sales and Industry Growth

SODA reported achieving record sales in May 2021, demonstrating a remarkable 900% year-over-year increase. This trend mirrors the broader industry, with other C2C sneaker marketplaces, such as StockX, also experiencing substantial sales growth despite the ongoing effects of COVID-19.

Strategic Partnership with KREAM

SNKRDUNK will collaborate closely with KREAM to facilitate the exchange of expertise in areas such as sneaker authentication, inventory control, logistical operations, and other crucial business functions.

The objective of this partnership is to collectively increase their combined market share within the Asian sneaker reselling market.