Yello Mobile


Yello Mobile is a South Korean mobile software company that primarily grew from its founding in 2012 as a rollup of various software companies in South Korea.

History

Lee founded the company as a startup incubator, using a variety of equity-based swaps and investments to roll-up software businesses in South Korea. Yello Mobile was hailed as a new and innovative venture model that brought much-needed exit opportunities for many entrepreneurs. Various copy cats emerged very quickly. The company raised over $187 million from investors such as Macquarie, Formation 8, and SBI Group. It also attracted directors and investors such as Gideon Yu and Brian Koo, the eldest son of the founder of South Korean chaebol LS Group.
Over a period of 6 years, the company acquired over 94 startup companies in their SMATO categories. However, it has been reported that the rapid growth via acquisitions has resulted in various management and communication issues across the firm.
While revenue soared from 68 million won to 527 billion won, lawsuits with investors and financial challenges have been reported in the press. The company pulled their initial public offering from the KOSDAQ for these reasons.
In February 2019, the company announced that Lee had resigned as CEO amidst rumors of bankruptcy proceedings and embezzlement accusations.