Eastern Gear, a specialized manufacturer of robot reducers (gears), is actively raising investments through its Series A funding round. The company plans to use the secured funds to establish mass production facilities for its globoid worm gear and accelerate its global market expansion.
According to the venture capital (VC) industry on the 12th, Eastern Gear is currently conducting a Series A round with a pre-valuation estimated at around 10 billion KRW.
The company aims to raise 40 billion KRW and has secured 20 billion KRW so far. The investors have not been disclosed. To attract an additional 20 billion KRW, the company is holding investor relations (IR) presentations for venture capital firms.
Eastern Gear's CEO, Yoo-hyun Kwak, stated, "We are currently in discussions with institutional investors through our IR activities. By securing investment, we plan to establish facilities for mass-producing globoid worm gears and expand into overseas markets, including the U.S., Japan, and Europe."
Founded in 2020 by CEO Kwak, Eastern Gear manufactures customized gear reducers for robotics, automotive, and industrial heavy machinery. The company gained market recognition in 2021, its second year, by securing an order for GM's electric vehicle bumper worm reducer, a first in Korea. Last year, it was selected as a preliminary unicorn company in North Gyeongsang Province, and this year, it was included in the Ministry of SMEs and Startups' "Super Gap Startup 10000+" program in the robotics sector.
Eastern Gear's flagship product is the globoid worm gear. A worm gear is a type of transmission device that efficiently transfers power within advanced machinery. Eastern Gear’s globoid worm gear is designed with an enveloping structure, addressing the common issues of heat generation and premature wear found in traditional worm gears. Additionally, it features a reverse rotation prevention function, enhancing both safety and energy efficiency when transporting heavy loads.
The company aims to enter the global market in earnest next year. It is currently negotiating OEM supply agreements for its globoid worm gears with companies in Japan and Turkey. Its technological capabilities have also been recognized in China. Last year, the company won an award at the Taihu Cup International Elite Innovation and Entrepreneurship Competition in China, securing a 300-million KRW investment commitment.
Eastern Gear is also establishing global partnerships. Since 2022, in its second year of operation, the company has set up a U.S. subsidiary to conduct global market research. In January next year, Eastern Gear will participate in CES 2025, the world's largest exhibition held in Las Vegas, where it plans to showcase its independently developed robot actuators.
Through its overseas expansion, the company aims to achieve 25 billion KRW in sales next year. This year, Eastern Gear expects to generate approximately 15 billion KRW in revenue by supplying globoid worm gears to major corporations and SMEs in Korea. The company also plans to expand its business into actuator and robot manufacturin
https://www.thebell.co.kr/free/content/ArticleView.asp?key=202412121450243560107854
