STIC Investments has agreed to acquire a controlling stake in Kidsnote, the childcare communication platform backed by Kakao, through a consortium with Kidsnote CEO and founder Choi Jang-wook and Seoul-based Xolon Invest, according to KED Global.
The transaction values Kidsnote at approximately ₩65 billion, or about $47 million at current exchange rates.
The acquisition will give STIC control of a high-frequency digital platform that the private equity firm sees opportunities to expand into adjacent businesses, including fintech, insurance and senior care.
The STIC-led consortium signed a share purchase agreement with Kakao Investment covering its 47.6% stake in Kidsnote.
The consortium subsequently plans to acquire shares from additional shareholders, bringing its ownership to approximately 60%.
The transaction is structured as a management buyout, with Choi participating alongside STIC Investments and Xolon Invest.
STIC is providing most of the acquisition capital, while Choi is also investing in the transaction and is expected to continue leading Kidsnote as CEO following the acquisition.
Founded in 2012, Kidsnote operates a digital communication platform connecting parents with daycare centers, kindergartens and teachers.
Kakao acquired Kidsnote in 2015, meaning the transaction will place the business under new controlling ownership more than a decade after it joined the Kakao group.
Kidsnote digitized communication that historically relied heavily on handwritten notices between childcare providers and parents.
The platform enables childcare centers to distribute notices, daily reports, medication information, meal schedules and other updates directly to families.
Kidsnote has built a significant position within South Korea’s childcare market.
The company has approximately 5.38 million registered users and about 3.64 million monthly active users.
That frequent engagement is a major part of STIC’s investment thesis because parents often interact with Kidsnote as part of their daily routines.
STIC sees an opportunity to leverage those relationships to introduce additional financial and consumer services beyond the platform’s core childcare communication functions.
Kidsnote’s financial performance has also been improving.
Revenue increased 48.2% in 2025 to ₩24.5 billion, equivalent to approximately $17.7 million at current exchange rates.
The company generated operating profit of approximately ₩450 million, or about $326,000, during 2025 after previously operating at a loss.
Profitability strengthened further during the first half of 2026.
Kidsnote generated approximately ₩1.7 billion, or $1.23 million, of operating profit during the period.
First-half EBITDA reached approximately ₩3 billion, equivalent to about $2.17 million.
The improving financial profile has been supported by Kidsnote’s expansion beyond its free communication service into additional revenue-generating offerings.
STIC plans to continue developing Kidsnote into a broader vertical platform capable of offering more products and services to its established parent and childcare user base.
Potential areas include insurance products for children and families, fintech offerings and other services that can leverage the company’s existing customer relationships.
STIC is also evaluating bolt-on acquisitions and new product launches as part of its effort to increase Kidsnote’s enterprise value following the acquisition.
Senior care represents another potential growth area.
Kidsnote launched Familynote in 2022, extending its communication model into senior care facilities and allowing families to receive information about elderly relatives, including daily activities and health-related updates.
The strategy could enable Kidsnote to evolve from a childcare-focused communications application into a wider family services platform spanning childcare, financial products and senior care.
At an approximately $47 million valuation, STIC is acquiring control of a platform with millions of monthly users, improving profitability and opportunities to monetize a highly engaged audience through additional services.
