[Exclusive] Senior care is big business ... Careing knocks on the IPO door [fn Market Watch]

[Financial News] Senior care company Careing is moving ahead with an initial public offering (IPO). Samsung Securities and NH Investment & Securities are leading contenders to serve as joint lead underwriters. The view is that, following revenue growth, the company has proved that care can be profitable by turning EBITDA positive.
According to investment banking industry sources on the 29th, Careing is pursuing a plan to appoint Samsung Securities and NH Investment & Securities as joint lead underwriters, targeting a listing in the second half of 2028.
Founded in 2019, Careing operates care services—including in-home care, adult day care, home-visit bathing and hospital accompaniment—alongside commerce in welfare equipment. Under its directly operated model, it has integrated home-care headquarters in four regions across the country.
Rather than using the franchising or brokerage models common in the industry, Careing directly operates its centers and employs care workers to provide services. It recognizes the full service fee as revenue, not just brokerage commissions. Unlike platform-based competitors that emphasize transaction volume, Careing is seen as having demonstrated its scale through revenue reported in its audit reports. Its strengths are also said to include direct management of service quality and clear accountability when an accident occurs.
Its employment scale is also distinctive. As of June this year, Careing and its subsidiaries directly employed around 8,000 people. Most of them are care workers on the front lines. The company is also drawing attention as a creator of stable care jobs amid a growing shortage of care workers, now a social issue.
Its results have grown rapidly. Last year, consolidated revenue, including that of subsidiaries, was 164.7 billion won, up 28.1% from 128.6 billion won the previous year. It continued to post an operating loss of 13.3 billion won. However, monthly EBITDA turned positive in November last year, and the company is said to have remained profitable on that basis since then.
Its profit model has also changed. In the past, adult day-care centers only made money when they filled their capacity. With high fixed costs such as labor, rent and vehicles, it was difficult to avoid losses if the number of users fell below a certain level. Careing is overcoming this limitation with an integrated home-care model that combines in-home care, adult day care and welfare equipment sales. The company is seen as improving profitability at each hub by connecting customers with multiple services within a region.
It has also secured ample financial firepower. Early this year, Careing brought in STIC Investments, Inc. and STIC Ventures as new investors and raised 40 billion won in Series C funding. Existing shareholders, including IMM Investment, SV Investment and Hyundai Investment Partners, also participated in follow-on investments. Total funding to date stands at 110 billion won. The company plans to use the funds to expand its integrated home-care infrastructure to as many as 70 locations by year-end and hire at least 1,000 people.
Market conditions are also favorable. At the end of last year, registered residents aged 65 and older numbered 10.84 million, more than 21% of the total population. The number of people recognized as eligible for long-term care grades also exceeded 1.23 million. In March this year, the Integrated Care Support Act, which enables people to receive medical and long-term care services where they live, took effect. This year's monthly ceiling for Grade 1 home-care benefits is 2,512,900 won, up 8.95% from the previous year.
Careing's integrated home-care model, which provides in-home care, adult day care and home-visit bathing within a single region, aligns with this policy direction. The law aims to ensure that seniors can receive the care they need continuously in their own homes.
The company is also stepping up its investment in technology. Careing is developing care robots for use in care settings. Its strategy is to be recognized as an AgeTech company in a labor-intensive service industry.
Competition to go public also appears to be gaining momentum. Rival CareDoc has selected Korea Investment & Securities Co., Ltd. as its lead underwriter and is pursuing a 2027 listing on KOSDAQ.
Challenges remain. Its consolidated net loss was 16.1 billion won in 2024 and 14.7 billion won last year. Cash and cash equivalents stood at 9.1 billion won at the end of last year, a slight increase from 8.3 billion won at the end of the previous year. One challenge it must overcome is that most of its revenue is tied to long-term care reimbursement rates set by the government.

[email protected] Kang Gu-gwi Reporter