SoftBank pumps $150m in South Korean fashion metaverse firm

SoftBank, through its Vision Fund 2, is investing US$150 million in Zepeto, a South Korean metaverse platform that sells fashion items for 3D avatars, according to a Wall Street Journal report.

The Japanese conglomerate invested the sum for the platform’s series B round, which also saw a group of South Korean investors – including BTS manager Hybe – separately pitch in US$41 million. The round values the startup at over US$1 billion, earning the company its place in the unicorn club.

Zepeto, which lets users customize their virtual avatars with different outfits and hairstyles (down to the user’s shape of freckles), will use the funds to build a “more intricate” metaverse ecosystem.

Nearly 1.5 billion virtual fashion items are currently available for sale on the platform, and top fashion brands like Gucci, Dior, and Ralph Lauren have unveiled their own virtual clothing collections on Zepeto.

Last month, SoftBank led a US$93 million funding round for metaverse platform The Sandbox, which is an Animoca Brands subsidiary that operates a virtual metaverse where players can build and monetize non-fungible tokens.

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