Photo Credit: Kakaobank
South Korea’s Kakaobank acquires a 15% stake in music streaming startup PLAM owner Naivy for $680,000.
South Korea’s largest online-only bank, Kakaobank, has acquired a 15% stake in financial technology startup Naivy, in a deal worth $680,000 (908 million KRW.) Naivy is the company behind music streaming app PLAM, which encourages users to listen with virtual coin rewards which can then be spent. The deal brings integration with Kakaobank’s own app.
“We decided to invest in Naivy to support fintech startups with outstanding technology,” said a spokesperson for Kakaobank.
After listening to songs and leaving short reviews, users will receive 10 or 20 KRW per song directly into their Kakaobank account, with no additional app installation required. Naivy’s service will be integrated directly into Kakao’s banking app, enabling users to access the music service through a tab within the bank app.
It’s an interesting concept, to be sure: a music service offered inside a mobile banking app, with financial rewards for listening activity. It will be interesting to see if such a niche concept might catch on in the broader technology sector, with South Korea leading the way.
Kakaobank has a history of investing in fintech startups and integrating their services into its banking app, providing support for these startups while enhancing its own app with service diversification. In 2023, Kakaobank gained a 15% stake in Nulleesoft, which operates SSEM, an algorithmic tax reporting service, and integrated its tax inquiry and reporting service into Kakao’s banking app.
“We will continue working to create a convenient and secure financial service environment based on mutual growth,” says the Kakaobank spokesperson.
Kakaobank is the internet banking branch for the South Korean online giant Kakao, which has its fingers in an array of musical pies across its varied subsidiaries. They include streaming service Melon and major K-pop firm SM Entertainment.
