Target Information

Keyno Rights, a company offering integrated search and content discovery services for online video streaming (OTT), has successfully raised 2.5 billion KRW in a pre-Series A funding round as announced on the 22nd. Established in 2018, Keyno Rights provides users with a seamless way to find and connect to streaming services such as Netflix, Disney+, Wave, Tving, Watcha, and Coupang Play, allowing instant access to movies, dramas, and TV shows.

Since its inception, Keyno Rights has seen significant growth, surpassing 300,000 cumulative app downloads last year. The company was also recognized as one of the top three developers in the 'Changgu' program, supported by Google Play and the Ministry of SMEs and Startups, further attesting to its potential in the market.

Industry Overview

The OTT industry in South Korea has experienced rapid expansion, driven by increasing consumer demand for diverse content and accessible streaming options. With the proliferation of smartphones and internet connectivity, more viewers are turning to OTT platforms for entertainment, reshaping the media consumption landscape.

Korean consumers increasingly favor personalized content recommendations, making integrated search services like Keyno Rights more valuable. The competition among streaming services has intensified, pushing companies to invest heavily in content and technology to attract and retain subscribers.

As the market grows, partnerships and integrations between service providers are crucial. The rise of collaborations among different platforms is indicative of an industry trend towards comprehensive and user-friendly services, ensuring customers have easy access to the content they desire.

Additionally, the South Korean government's support for startups through initiatives like TIPS (Tech Incubator Program for Startups) is fostering innovation within the industry, allowing companies like Keyno Rights to secure the necessary funding to enhance their services and expand their reach.

Rationale Behind the Deal

The recent investment aims to strengthen Keyno Rights' position in the competitive OTT landscape. The injection of funds from existing investors such as Kakao Ventures and Shinhan Capital, alongside new investors like Union Investment Partners and LG Uplus, is poised to bolster the company's operational capabilities and market presence.

Keyno Rights plans to utilize the funds to enhance its integrated search portal, establish connections within the content industry, and ultimately solidify its status as an essential tool for content consumers in South Korea.

Investor Information

Union Investment Partners is a notable investor in this round, with a keen focus on companies that bridge gaps between content producers and consumers. The firm recognizes the potential for Keyno Rights to provide substantial value amid the competitive OTT market.

LG Uplus, another eminent investor, intends to explore synergistic capabilities within Keyno Rights’ vast data and analytics offerings, particularly through integrated services that enhance user experience across their platforms.

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The investment in Keyno Rights appears to be a strategic move in an increasingly crowded OTT market. The company is well-positioned to capitalize on growing consumer preferences for unique and personalized content experiences. By leveraging its integrated search technology, Keyno Rights can meet consumer demands more effectively than competitors that offer standalone OTT services.

Furthermore, the partnerships formed through this investment could enable Keyno Rights to create additional value through collaborative features that enhance user engagement. For instance, integrating their platform with LG Uplus’s services could provide users with unparalleled convenience and access.

However, the key to success will depend on Keyno Rights’ ability to maintain and expand its content partnerships and ensure a robust recommendation system. If they can navigate the competitive landscape while delivering a superior user experience, the investment could yield substantial returns for investors.

In summary, Keyno Rights' innovative approach and the recent influx of capital provide a strong foundation for future growth. The potential expansion across new markets and innovative service offerings suggests a promising investment opportunity for stakeholders involved.

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