South Korean crowdfunding platform Wadiz, often compared to Kickstarter, is expanding its services to include fulfillment for project creators.
National courier Hanjin Express, convenience store courier CU, and fulfillment startups Doing and FSS have partnered with Wadiz to provide the service.
In addition, project creators on Wadiz can now access a flat rate for fulfillment, including real-time tracking and discounted rates compared to current logistics pricing plans.
Since its inception, Wadiz has offered rewards-based and equity crowdfunding projects in 16 categories since its inception.
However, the platform faced difficulties with customer support and product shipping, prompting the introduction of new fulfillment services.
Despite generating KRW 11.7 billion ($9.8 million) in revenue from April to December 2019, Wadiz's operating expenses of KRW 21.6 billion ($18 million) resulted in a deficit of KRW 9.9 billion ($8.3 million).
With advertising accounting for 34.6% of operating expenses, Wadiz CEO David (Hye-sung) Shin has focused on expansion to increase revenue and address the deficit.
Wadiz recently launched "Find Startup," a service designed to improve transparency between startups and investors.
Three weeks after its debut, more than 1,000 IR reports had been uploaded to the platform.
While this business model has potential, it is still being determined whether it will generate enough revenue to cover Wadiz's deficit.
Competition in the crowdfunding sector is fierce, with Wadiz competing against Kakao Makers and Tumblbug.
While Wadiz initially had an advantage with a lower creator fee than Kakao Makers, the merger of Kakao Makers with Kakao Commerce threatened Wadiz's position.
The introduction of fulfillment services for Wadiz has been critical to the company's survival.
Despite these challenges, Wadiz has ambitious plans for the future. With an estimated total crowdfunding of KRW 400 billion (USD 340 million) this year, the company aimed to go public in 2021.
Wadiz was also recognized by the Financial Times in April as one of the High Growth Companies in Asia-Pacific 2020.
However, with competitors moving quickly and fraudulent creators posing a threat, Wadiz's future growth remains to be determined.