T Map Mobility Co., a latecomer in the mobility service provider backed by Korea’s top wireless carrier SK Telecom Co., drew pre-IPO funding of 400 billion won ($359 million) from two private equity funds for ammunitions to better compete with Kakao Mobility front-running in the app-based ride-hailing market.

According to multiple sources from the investment bank industry on Thursday, T Map Mobility signed into an agreement to issue 200 billion won worth shares each to Affirma Capital and EastBridge Partners. The equity deal is led by Standard Chartered Securities.

T Map Mobility, a navigation service spun off from SK Telecom last year to expand to app-based mobility platform, promised the funders to go public by 2025.

As the pre-IPO funding drew just two preliminary bidders Affirma Capital and EastBridge Partners, SK Telecom proposed them an equal share in the company.

T Map Mobility plans to use the funds to enhance competitiveness of its new businesses. The company is expected to draw up a growth blueprint with the two private equity funds and its strategic partner Uber, a global ride-hailing platform with $50 million equity in T Map Mobility and over $100 million in their joint venture UT.

The T Map entry is expected to intensify the crowded ride-hailing market and pose a formidable challenge to Kakao dominance. Kakao Mobility also announced recently that it would raise an additional 300 billion won from Carlyle Group, GS Group, and Google. The company under the country’s top mobile messenger app Kakao Talk commands 80 percent of the market.

Shares of SK Telecom closed 1.25 percent lower at 276,500 won on Friday.

By Kang Woo-seok and Lee Eun-joo

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