South Korea’s investment company Neoplux invests in the country’s rent-a-car company BeMyCar.

Neoplux has recently signed a stock purchase agreement with BeMyCar’s existing shareholders, sources close to the matter said Tuesday. The deal is expected to close at the end of this month. The investment firm will invest a total of 25 billion won to acquire BeMyCar’s existing shares and redeemable convertible preference shares (RCPS). BeMyCar will use the proceeds worth about 15 billion won from the rights offering to expand its business.

Neoplux will invest in the rent-a-car company via its third blind-pool fund launched in 2018. Once the deal closes, Neoplux will become the second largest shareholder of the mobility company.

Among existing shareholders, Industry Bank of Korea Private Equity (IBK PE) and BNW Investment and Capstone Partners have reportedly kept some of their stake in the company. IBK PE and BNW Investment and Capstone Partners own a 22.2 percent and 7.9 percent stake in BeMyCar, respectively.

The investment firm has decided to bet on BeMyCar due to a change in consumption patterns and the company’s strong foothold in the rent-a-car market.

According to data from the Korea Rent-a-Car Association (KRCA), cars registered for rental services at the country’s top 10 rent-a-car companies tallied at almost 620 thousand units in 2019, an 11.3 percent increase from a year ago.

Established in 2013, BeMyCar incorporates Intelligent Mobility System (IMS), a mobility sharing platform that provides vehicle in the most cost-effective way to mobility on-demand service providers. As a smart mobility platform company providing various on-demand mobility services, BeMyCar seeks to replace individual car ownership.

BeMyCar has grown both its size and profitability. The company recorded sales of 20 billion won in 2018, a 70.1 percent increase from a year ago. The company also shifted to an operating profit of 900 million won in 2018. BeMyCar has recently attracted attention with Halla Holdings investing two billion won in BeMyCar. (By Rho Ar-rum)