Chat app Kakao’s games business lands $130M from Tencent and others ahead of IPO

Korea’s dominant messaging firm Kakao is back raising funds after its games business, a standalone unit that is headed for an IPO, pulled in $130 million (140 billion KRW) from Tencent and a range of other strategic investors.

The company, which owns Korea’s top mobile messaging app and one of the country’s largest internet portals, operates a sprawl of business that include taxi-hailing, deliveries, comics, payments and more. It has adopted the spin-out approach favored by Chinese tech firms for a number of these entities, with Kakao Taxi — for example — raising more than $400 million from outside investors last year.

Recently, Kakao itself completed a placement in Singapore which netted the parent firm $1 billion for international growth, and now it is the turn of its…

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