Megazone Cloud, an artificial intelligence and cloud computing company, said on the 1st that it had signed an investment agreement with Neowiz Partners, the investment arm of Neowiz Holdings (042420).
The deal is a pre-IPO investment in Megazone Cloud, which is preparing to go public, and takes the form of an unconditional purchase of common shares. Megazone Cloud said it would use the proceeds to build up future growth engines including AI and security.
Megazone Cloud previously raised 48 billion won in a Series A round in 2019, followed by 190 billion won through two Series B rounds in December 2020 and June 2021. In 2022, KT invested 130 billion won as a strategic investor, and the company also closed a 450 billion won Series C round. In June this year, parent company Megazone received a 800 billion won investment from Glenwood Credit and used the funds to buy out Megazone Cloud stakes held by existing financial investors, lifting its holding to 72%.
"This new investment carries significant meaning in that the growth potential and future value of our business have been recognized," Megazone Cloud CEO Yeom Dong-hoon said. "We will continue our efforts to strengthen our fundamentals in order to accelerate shared growth with our investors."
Kim Sang-wook, chief executive of Neowiz Partners, said the firm decided to invest after highly rating "the unrivaled competitiveness of the AI and cloud business that Megazone Cloud operates and its growth potential in AI transformation." He added, "We will actively support Megazone Cloud so that its listing proceeds successfully on the back of this investment."
