[Exclusive] The crisis of the once-glamorous Busan preliminary unicorn 'Slash B Slash'... Is a second 'Spigen Korea' myth possible?

A clear brake has been put on the growth trajectory of Slash B Slash (SLBS), a company specializing in phone accessories that had been rapidly advancing as a 'preliminary unicorn' with full support from Busan City. Although it grew its size by attracting large-scale investments of over 12 billion won on the back of glamorous collaborations with famous K-pop artists and global brands, it has been confirmed that a serious red light has recently turned on regarding its internal soundness, including a severe operating deficit, soaring inventory, and a brain drain.

The industry is recalling the solid success formula of Spigen Korea, the first listed mobile phone accessory company in Korea, and is focusing attention on whether Slash B Slash will be able to overcome its current crisis and achieve a successful initial public offering (IPO).

■ 'Explosive External Growth' Achieved with over 150 Global IPs and Innovative Technology

Established in Busan in July 2020, Slash B Slash is a startup founded by CEO Jung Yong-chae, who was in charge of user experience (UX) planning and design for the 'Galaxy S' series for about eight years at the Samsung Electronics Mobile Communications Business. By developing its proprietary 'CAT (Content Activation Tag)' system utilizing near-field communication (NFC), the company introduced an innovative smart product that automatically changes themes such as wallpapers and icons simply by attaching the smartphone case, thereby instantly capturing the market's attention.

The greatest weapon of Slash B Slash was its overwhelming intellectual property (IP) expansibility. It poured out collaboration products not only with global characters such as Disney, Pokémon, Minions, The Simpsons, and Marvel, but also with K-pop artists possessing powerful fandoms, including BTS, Stray Kids, and CL. Recently, it secured over 150 IP licenses ranging from sports fields like the National Football League (NFL) and the Spanish professional football league La Liga, to fashion brands like Crocs, leading the 'Phon-kku' (smartphone decorating) trend among Generation Z.

Boosted by such buzz, the company's external size expanded rapidly. Its revenue, which was 1 billion won in 2020, its first year of establishment, recorded 2.9 billion won in 2021 and 10.8 billion won in 2022, and then soared to 21.4 billion won in 2023. Recognized for its potential, it was selected as a 'Baby Unicorn' by the Ministry of SMEs and Startups in 2022, and subsequently achieved the splendid feat of becoming the second 'Preliminary Unicorn' in the history of the Busan region in 2024.

■ The Shadow Hidden Behind the Glamour... 'Turn to Deficit' and Deepening Concerns of a 'Liquidity Crunch'

Based on such explosive growth, Slash B Slash was recognized with a high corporate value in the market. Following a capital injection from Intops Investment, Daesung Private Equity, and Industrial Bank of Korea (IBK) in 2022, it attracted additional investments in 2023 from GS Retail, KB Kookmin Card, and others. The estimated enterprise value at the time was around 38 billion won, and it accumulated over 12 billion won in investment funds.

However, unlike its glamorous outward appearance, severe warning alarms have recently been ringing regarding the company's financial condition and profitability. Although its revenue jumped to 21.4 billion won in 2023, due to massive expense expenditures, it recorded an operating loss of -3.7 billion won in 2023, shifting to a deficit. To make matters worse, in 2024, even the revenue that drove its growth stagnated at 22.1 billion won, and its operating loss snowballed to -4.6 billion won.

Looking at the data from PitchDeck, the deterioration of the company's cash flow and financial soundness becomes even clearer. A point to note is the increase in 'inventory.' The inventory turnover days, which were a mere 14 days in 2020, exploded nearly sixfold to 82 days in 2024. As inventory piles up in the warehouse, the Cash Conversion Cycle lengthens, which directly leads to choking off the funding line. Additionally, based on PitchDeck's 'Relative CAPEX (Capital Expenditure) Indicator,' investments have shrunk to less than half, putting the brakes on securing future growth engines.

The internal unrest within the organization is also severe. The number of employees, which exceeded 60 in 2024, has halved to the 30s as of early this year. Above all, as revenue growth has also faltered in a situation where borrowings are steadily increasing, concerns are mounting that the company is highly likely to fall into a serious liquidity crunch (a phenomenon of cash shortage).

■ The Substantial Management of 'Spigen Korea,' the 1st Listed Domestic Company that Became a Role Model

In order for Slash B Slash to escape its current quagmire and enter the stock market, it is pointed out that it must benchmark the growth model of Spigen Korea, which previously succeeded in a KOSDAQ listing for the first time in the mobile accessory industry.

Spigen Korea, established in 2009 by CEO Kim Dae-young, preempted market trends through thorough field-oriented management and continuous research and development (allocating over 10% of its entire workforce to R&D). Spearheaded by mega-hit products embedding unrivaled technological prowess, such as 'Neo Hybrid' and 'Slim Armor', it aggressively targeted the global market, particularly North America and Europe.

The true competitiveness of Spigen Korea lay not in a glamorous outward appearance but in its 'overwhelming profitability' and 'dominance over global B2C channels.' At the time of its listing, it built a solid distribution network by entering 1,825 large offline stores (such as Costco) in the North American region, and reaped over 80-86% of its total revenue from overseas. As a result, around the time of its KOSDAQ listing in 2014, it proved a stable surplus structure by achieving an overwhelming operating profit margin in the mid-20% range compared to its industry peers.

■ Slash B Slash in Crisis, Can It Truly Cross the Finish Line of Listing?

Slash B Slash is staking its life on global expansion by recently expanding global bases such as LA in the US, Tokyo in Japan, and Jakarta in Indonesia, and participating in the world's largest mobile exhibition 'MWC 2025' to unveil a solution that supports five languages. Based on this, it is seeking a breakthrough by selecting KB Securities as its lead manager with the goal of a KOSDAQ listing around 2026-2027.

However, the market's gaze is cold. It has been proven financially that sustainable growth cannot be guaranteed solely by the method of pouring in massive funds to buy famous IPs and conduct collaborations. For Slash B Slash to be reborn as the second Spigen Korea and achieve a successful initial public offering (IPO), it must overcome the arduous mountains of gaining a competitive advantage against competitors like Casetify, turning to a surplus through revenue growth and cost reduction, and securing liquidity through the repayment of borrowings.