Korean luxury fashion platform Balaan is getting fresh attention from investors, bucking the trend among global rivals reeling from sluggish sales and lukewarm investor appetite.

According to industry sources on Wednesday, Balaan has been in talks with multiple investors in its Series D funding round. Among the investors are Chinese tech giant Alibaba Group and fashion platform operators, including China’s Poison and Japan’s Zozotown. They are said to be eyeing investments in the Korean platform not just as a financial investor, but also as a strategic partner.

Balaan was valued at 300 billion won ($217 million) in the previous Series C funding in 2022. With the latest funding round, it aims to elevate the market value to about 400 billion won.

A Balaan official also confirmed the ongoing talks, saying, “We have been contacted with more than seven potential investors since we launched our global platform service in May last year.”

The global site, Balaan.com, attracted 1 million users globally in the first week after its launch alone. Key markets include the US, Singapore and the United Arab Emirates.

The investor rush comes as luxury fashion platforms, especially those based in Europe, struggle for survival amid falling sales following the end of the post-pandemic luxury sales boom.

London-based Matches was shut down in June, just two months after Frasers Group’s acquisition for $66.6 million. Korean e-commerce giant Coupang has suffered operating losses in recent quarters largely due to the cash-strapped Farfetch, the UK fashion platform it acquired in a $500 million deal in December last year.

The Balaan official admitted that the Korean platform is also feeling the pinch from the recent slowdown. But he stressed Korea’s growth potential as a trend-setting market for fashion sales overall.

“It is true that high-end brands are increasingly seeking to create and control their online channels. But they cannot easily replicate the way we service and communicate with our customers. Our platform offers the undeniable advantage of allowing consumers to compare and analyze multiple brands at a glance with consistent metrics,” he added.

An industry official noted that Alibaba and other potential investors for Balaan operate their own e-commerce platforms.

"Balaan has earned recognition from Korean consumers who are known for their high standards in quality and speed, making it a highly attractive partner for their entry in Korea and beyond,” the official said.

“Now Asia leads global fashion trends. Korean celebrities are increasingly being tapped as ambassadors for top luxury brands as well as emerging Korean brands are now considered the next luxury trend. And all these are best reflected in Korean fashion platforms.”

Balaan’s overseas sales are expected to hit 50 billion won this year. The company projected quadruple growth to 200 billion won next year.