Urbanbase Secures $11.1M Series B+ Funding - Korean 3D Spatial Data

Urbanbase Secures $11.1 Million in Series B+ Funding

Seoul-based Urbanbase, a developer of a 3D spatial data platform geared towards interior planning and design, has announced the successful completion of a $11.1 million (13 billion won) Series B+ funding round. This investment will facilitate the company’s ongoing expansion efforts.

Funding Details and Investors

Hanwha Hotels & Resorts, a subsidiary of the prominent South Korean conglomerate Hanwha Corporation, spearheaded this latest funding initiative.

Founded in 2013 by Jinu Ha, formerly an architect and currently the company’s chief executive officer, Urbanbase has now accumulated a total of $20 million (approximately 23 billion won) in funding.

Previous Funding Rounds

This round did not include participation from previous investors. Prior to this, the company secured $1.8 million in Series A funding, alongside an additional $1.2 million, both in 2017. A first Series B round was completed in April 2020, with support from investors including Shinsegae Information & Communication, Woomi Construction, SL Investment, KDB Capital, Shinhan Capital, Enlight Ventures, CKD Venture Capital, and Breeze Investment, as stated by Ha.

Strategic Allocation of Funds

The newly acquired capital will be strategically allocated to several key areas. These include the enhancement of its B2B SaaS offerings and substantial investment in research and development (R&D) focused on advanced virtual reality (VR), augmented reality (AR), and 3D technologies.

These technologies are considered foundational to the metaverse, a new market segment Urbanbase intends to enter. Strategy Analytics projects the global metaverse market to grow to $280 billion by 2025, a significant increase from $30.7 billion in 2021.

The Growing Metaverse Market

Businesses concentrating on metaverse-related opportunities are experiencing growth as part of a forward-thinking strategy for establishing sustainable business models. This encompasses virtual and augmented reality, as well as the associated hardware, software, and emerging technologies.

Major technology corporations, including Facebook, Intel, and Microsoft, are actively targeting this sector. Apple is also making inroads into virtual reality, currently developing a high-end VR headset.

Enhancements to Urbanbase Studio

Urbanbase also intends to upgrade its home interior software platform, Urbanbase Studio. This platform features capabilities to convert 2D indoor space images into 3D representations using Urbanbase’s patented algorithm.

It also allows for the visualization of interior products in augmented reality and utilizes AI technology for spatial image analysis.

User Base and Client Portfolio

Urbanbase currently boasts 50,000 monthly active users and a total of 70,000 registered B2C users. The company also serves approximately 50 B2B clients.

“The majority of our B2B clients are large conglomerates located in South Korea and Japan,” Ha noted. “Examples include LG Electronics, Mitsubishi Real Estate Service (Japan), Nitori Holdings, Dentsu Group, and SoftBank. We aim to broaden our B2B client base to include small and medium-sized enterprises and attract more B2C users following this Series B+ funding.”

Future Acquisition Plans and Market Expansion

Urbanbase is actively seeking potential acquisition targets within the proptech and construction technology sectors, as revealed by Ha to TechCrunch.

Currently, the company’s focus is on developing interior tools for apartment buildings, given that 70%-80% of households in both South Korea and Japan reside in apartments. However, Urbanbase plans to diversify its portfolio through the acquisition of a startup specializing in different types of residential properties.

The platform currently supports Korean and Japanese languages. English language support will be added before the company’s planned expansion into Singapore at the end of 2021, according to Ha.