• funding Stage : Pre-Series A
• Raising Amount : KRW 1.5 B
• Desired Fundraising Timeframe : 3Q 2024

The current tennis population in South Korea is estimated at around 900,000. Driven primarily by the MZ generation, the rapidly expanding tennis market has grown to a substantial size, valued at approximately KRW 900 billion for coaching services both indoors and outdoors. The tennis equipment market is also significant, estimated at around KRW 400 billion, with a similar size estimated for the booking and matching sectors. Despite the sport’s upscale image and stylish attire contributing to its popularity, the tennis industry in Korea has faced criticism for inadequate infrastructure in terms of space and services.

Tennis company Smaxh offers a range of services, including player matching and court booking, to cater to tennis enthusiasts. Living up to its dynamic and challenging name, Smaxh has rapidly grown its user base since launching.

Smaxh manages ‘Smaxh zone,’ a tennis lesson management program, and ‘Smaxh,’ a tennis court reservation platform. Over 30 businesses have registered with Smaxh zone, and the Smaxh app processes more than 10,000 tennis bookings each month. Moreover, the AI swing solution ‘xlab,’ developed through the TIPS project, is revolutionizing the tennis lesson market by integrating AI motion recognition technology with traditional coaching methods.

Seol Woo-hyeong, CEO of Smaxh, originally devised the tennis matching service concept while working at Hyundai Motors. He resigned to pursue his entrepreneurial vision without impacting his colleagues or company, establishing Smaxh in 2022.

Since its launch, Smaxh has attracted an average of 5,000 users daily, providing various tennis-related services ranging from player matching and court bookings to second-hand transactions. The company aims to alleviate the difficulties tennis players face and reduce the high costs associated with tennis lessons by utilizing its proprietary AI simulator solution. Through its comprehensive services and solutions, Smaxh is dedicated to making tennis more accessible and increasing the domestic tennis population.

CEO Seol Woo-hyeong commented, “The domestic tennis market is growing by more than 20% annually and I believe it has the potential to exceed KRW 1 trillion in size. Smaxh’s ultimate goal is to establish affordable tennis lesson infrastructure, focusing on expanding space-related business.”

He added, “For a startup to survive, focusing on a single model is essential. Our focus on the matching service aims to make Smaxh self-sustainable, with a goal to break even by 2025.”

In pursuit of a Pre-Series A funding round, Seol Woo-hyeong stated, “The tennis sector is a high-value industry with ample growth potential. Smaxh currently holds 10% of this burgeoning market. We are a team prepared to focus intensively on solving one particular problem, making us an exceptionally attractive investment opportunity.”

What problem is Smaxh addressing?

Smaxh aims to tackle the challenges beginners face with high tennis lesson costs and limited court accessibility. Traditional tennis lessons are not only expensive but many courts are also booked by clubs for extensive periods, making them scarcely available for newcomers. Furthermore, the analog coaching methods are inefficient, failing to foster an environment that encourages beginners to continuously learn and enjoy tennis. Often, after completing lessons, players struggle to find where to book courts or how to find partners to play with.

The Smaxh platform is designed to simplify the process of booking courts and finding partners, ultimately making tennis more accessible for everyone from beginners to advanced players.

How does Smaxh solve this problem?

Smaxh offers two primary solutions. First, it uses an AI-based simulator to develop economical and efficient group lesson programs. This initiative aims to lower lesson costs and enable more people to affordably learn tennis. By utilizing ball machines and AI technology, the program reduces the burden on coaches and provides an environment that can effectively teach multiple students simultaneously.

Second, through the Smaxh matching platform, the company expands court partnerships and offers discounted rates during off-peak times. This makes it easier for beginners to book and use courts. The platform also streamlines the process of finding tennis partners, thereby enhancing court utilization and allowing users to enjoy tennis at more affordable prices.

What are Smaxh’s competitive strengths and technological advantages?

Firstly, Smaxh’s AI-based tennis simulator, xlab, utilizes body tracking technology to analyze users’ motions in real time, offering personalized feedback. This sophisticated method not only tracks the trajectory of the ball but also helps users maintain proper form and prevent injuries.

Secondly, the Smaxh matching platform leverages extensive user data to provide optimal matching services. Currently, about 10% of South Korea’s tennis population, or roughly 80,000 users, are active on the Smaxh platform. These users benefit from a system where they can post and review evaluations after games, enabling them to continually monitor and improve their skills. This feedback mechanism is vital for keeping users engaged and ensuring high retention rates by providing a means for players to objectively assess skills and improve their match experiences.

What services are currently offered?

Smaxh has developed an AI-based tennis simulator known as xlab, which features 3D body tracking, ball machine control, and access to over 1,000 hours of swing data from players. xlab provides real-time motion analysis and personalized feedback, making lessons more accurate and efficient. The company is planning to expand this technology into a coach-free simulator using AI, which will dramatically cut lesson costs and broaden access to tennis learning.

The Smaxh matching platform currently supports 10,000 daily users and records a monthly active user base of 30,000, with over 2,100 tennis clubs registered. Despite these numbers, only about 600 match requests are posted daily, with many users leaving the platform due to difficulties in finding matches.

In June 2024, Smaxh introduced a new service where it serves as the host, offering discounted rates for courts during off-peak hours to boost the availability of matches and simplify the matching process for users. Each quick match facilitated by Smaxh generates KRW 80,000 in revenue and KRW 40,000 in profit contribution. By successfully conducting 1,000 quick matches a month, the company can achieve a contribution profit of KRW 40,000,000. If the number of successful matches exceeds 1,500 per month, the structure will become self-sustaining, solidifying this service as one of Smaxh’s core offerings.

Looking ahead, we aim to commercialize the xlab simulator in our own training venues by 2025. By 2026, we plan to introduce an AI-based feedback system to further reduce lesson costs and enhance quality. By 2027, we aspire to revolutionize the tennis lesson market with an expanded version of the simulator capable of providing coach-free lessons through AI technology.

What is the size of Smaxh’s target market and who are the target customers?

South Korea’s tennis market is experiencing rapid growth, with an annual increase of 20%. Currently, the tennis population is approximately 900,000, expected to rise to 2.79 million by 2028. Given the income levels and sports participation rates, South Korea’s tennis market is highly promising. Tennis is particularly popular among the upper-middle income class, with data showing that 50% of tennis players earn between KRW 40 million and 80 million annually.

Comparatively, Korea’s ratio of tennis players per 1,000 people is low at 14, versus 36 in Japan, 61 in Spain, 63 in France, and 72 in both Germany and the USA. This indicates that while the Korean tennis market is still developing, it has significant growth potential.

With a per capita GDP of about $34,165, similar to other developed countries, South Korea has a consumer base with sufficient income levels, suggesting a high potential for an increase in the tennis population.

Our primary target customers are tennis beginners and amateur players seeking affordable lessons and convenient court access. Smaxh meets these needs through its AI-based simulator that offers cost-effective and efficient group lessons and a tennis matching platform that facilitates easier access to the sport for more people.

What is Smaxh’s business model?

Smaxh’s business model is built on two main pillars:

Firstly, Smaxh operates lesson spaces using an AI-based tennis simulator. The lessons offered through the Smaxh Zone Academy are designed to be more economical and efficient than traditional methods. The academies operate both directly and through a franchise model, targeting monthly sales of KRW 50 million and a net profit of KRW 20 million per store. The goal is to achieve an investment payback period of 11 months.

Secondly, the Smaxh matching platform simplifies the process of booking tennis courts and finding partners. Although over 10,000 tennis users attempt to use this service daily, the actual match completion rate remains below 1,000. To address this, Smaxh secures available courts and offers them to users, operating a matching service with a contribution profit margin of 50%.

If the quick matching service proves successful, Smaxh could become a direct court supplier, thereby increasing the market supply of matches and enhancing revenue opportunities. The platform could also expand into brokering lessons and selling tennis equipment, enabling a variety of revenue generation models within the Smaxh platform.

What are Smaxh’s notable achievements?

Smaxh has seen remarkable growth over the past few years with several key accomplishments. In terms of technology development and operational success, a standout achievement is the development of an AI-based tennis simulator that incorporates 3D body tracking and ball machine control technologies. This simulator is already in successful operation at the Smaxh Zone flagship academy, where 120 students are enrolled, each paying a monthly lesson fee of KRW 240,000.

On the platform growth front, the Smaxh matching platform currently boasts 30,000 monthly active users and has registered 2,100 tennis clubs. This platform enhances user experience by simplifying the process of booking and matching tennis courts.

Regarding revenue performance, Smaxh generated KRW 20 million in 2022 and increased this to KRW 570 million in 2023. As of June 2024, the company has achieved KRW 700 million in revenue, with a target of KRW 2.5 billion for the year, largely driven by its successful host-managed quick matching service.

Smaxh has also successfully completed initial fundraising from various investors and is currently engaged in a pre-Series A funding round. The company has partnered successfully with major brands like tvN Sports, FILA, Wilson, Renault, and Perrier, continually working to cultivate an “easy and appealing tennis culture” in South Korea.

What makes the Smaxh team competitive?

The strength of the Smaxh team lies in the impressive backgrounds of its key personnel and their capability for innovative technology development. CEO Seol Woo-hyeong, a former expert on hybrid systems at Hyundai Motors, successfully launched the industry’s first commercial AI-based tennis simulator. He has received the highest technology evaluation rating, an A from the Technology Guarantee Fund, and a BBB+ in the final grade assessment.

The Chief Growth Officer (CGO) previously worked with Ajoo Sports Company, the leading distributor of tennis equipment in South Korea, known as Tennis Metro. With 30 years in the tennis distribution market, he brings a wealth of data and an extensive network. His experience has been pivotal in spearheading successful collaborations with global apparel brands like FILA and Wilson, establishing a unique market presence for the company.

Within just two months of launching, the Smaxh app was featured as App of the Day on the App Store and quickly secured 80,000 subscribers. Seventy percent of its service users are millennials, with 32% being female. This demographic, young and economically capable, particularly the significant number of female users, provides Smaxh with a favorable environment for creating high-value business models within the tennis industry. Additionally, the company is actively leading collaborations with global sports brands.

In terms of technology innovation, Smaxh was the first in the industry to commercialize an AI-based simulator, successfully integrating this technology at its flagship academy, Smaxh Zone Seolleung.

Three reasons why investing in Smaxh is essential:

Firstly, Smaxh occupies a leading position in the rapidly growing tennis market. The Korean tennis market, where Smaxh operates, is expanding at an annual growth rate of 20%. The tennis population in Korea, currently at 900,000, is projected to grow to 2.79 million by 2028. Smaxh is leveraging this expansion with its innovative AI-based tennis simulator and matching platform, which are perfectly aligned with the market’s growing demands.

Secondly, Smaxh is recognized for its innovative technology and high user satisfaction. The company has developed groundbreaking technologies, including the AI-based tennis simulator and the Smaxh matching platform. Utilizing a vast database of tennis user data and a network of affiliate courts, Smaxh offers optimal matching services, achieving a significant milestone with 30,000 monthly active users.

Thirdly, Smaxh boasts a strong network and has robust expansion plans. The company has established a substantial network with numerous tennis courts, which enables it to offer discounted access during off-peak hours, making tennis more accessible to beginners. Moreover, using the data collected from its matching platform, Smaxh is well-positioned to analyze market trends and expand into diverse business areas such as e-commerce and lesson brokerage. This strategic network and expansion potential solidify Smaxh’s foundation for continuous growth.

Lastly, Smaxh’s recent recognition as one of the ‘Top 20 Successful Startups of 2024’ by ‘Innovation Forest’ highlights its capability to succeed in the sports sector, demonstrating that success is not limited to traditional sports like golf.