Delivery Hero seeks buyer for Baemin at about 8 trillion won

(Woowa Brothers)

Delivery Hero has begun formal sale procedures for its controlling stake in Woowa Brothers, the operator of South Korea’s leading food delivery platform Baemin, as the German company seeks to boost shareholder value amid a sharp decline in its market capitalization.

According to sources on Wednesday, JPMorgan, the sale adviser, recently distributed teaser letters to domestic and overseas strategic investors and private equity firms.

Potential buyers reportedly include Naver, Alibaba Group, DoorDash and Uber.

Delivery Hero is said to be seeking a valuation of around 8 trillion won ($5.41 billion) for Woowa Brothers, equivalent to roughly 13 times the company’s average operating profit over the past two years.

The German delivery company acquired an 88 percent stake in Baemin in 2019 for 3.6 billion euros, or about 4.8 trillion won at the time.

Delivery Hero later sold Yogiyo, another South Korean food delivery platform it owned, to a consortium led by GS Retail and Affinity Equity Partners for about 800 billion won following a corrective order from regulators.

In a shareholder letter released late last year, Delivery Hero acknowledged disappointment over its stock performance and said it was reviewing various strategic options to improve shareholder value.

The company’s market capitalization has fallen sharply from around 60 trillion won in 2021 to roughly 12 trillion won currently.

Among potential buyers, Chinese companies are viewed as the most likely acquirers.

Industry observers said Naver is currently focused on merger-related work involving Naver Financial and cryptocurrency exchange operator Dunamu, limiting its ability to pursue a large-scale acquisition.

U.S. firms such as DoorDash and Uber are also seen as having limited incentive to commit several trillion won to the relatively mature South Korean market.

By contrast, Alibaba has strengthened its foothold in South Korea’s e-commerce sector through a joint venture established last year with Shinsegae Group involving Gmarket and AliExpress Korea.

Analysts also pointed to Chinese food delivery giant Meituan as another possible contender because its largest shareholder is Chinese internet giant Tencent Holdings and South Korea could serve as a strategic hub for expanding its Asian delivery platform network.

An investment banking industry official said the South Korean market may appear less attractive to U.S. companies because the operational effort required could outweigh profitability, while Chinese firms have stronger incentives to use the country as a regional base for expansion.

Woowa Brothers has continued to expand revenue, but profitability has weakened.

Revenue rose from 3.42 trillion won in 2023 to 4.32 trillion won in 2024 and 5.28 trillion won in 2025. Operating profit, however, declined for three consecutive years, falling from 699.8 billion won in 2023 to 640.8 billion won in 2024 and 592.8 billion won in 2025.

Another investment banking industry official said that despite declining operating profit, Baemin remains the dominant player in the South Korean delivery market and continues to generate sizable earnings through its commission-based business model.