• funding Stage : Series A
• Raising Amount : KRW 20 B ($14.3 million)
• Desired Fundraising Timeframe : 4Q 2024

When asked if the company name “Dtonic” is short for “Data + Tonic,” the answer was a clear “yes.” This explanation comes from CEO Yong joo Jun of Dtonic. The first thing you’ll notice on Dtonic’s website is the phrase, “LET’S TONIC DATA.” CEO Jun elaborated, “In a gin and tonic, gin is a relatively inexpensive liquor, but when mixed with tonic water, it becomes a high-value cocktail. Similarly, Dtonic transforms what may seem like low-value data into highly valuable outcomes.”

While many companies claim to handle data effectively, readers might initially think Dtonic is just another one of those firms. However, the truth is far more impressive. In 2023, Dtonic recorded revenue of $12.9 million (18 billion KRW) and is projected to achieve $25 million (35 billion KRW) in revenue this year. So, how exactly does Dtonic “tonic data” to produce such results?

In essence, Dtonic specializes in rapidly consolidating disparate data generated across various scenarios, heterogeneous devices, and fragmented platforms—data that is often challenging to integrate. This enables the company to support strategic decision-making for its clients. CEO Jun compares Dtonic to the U.S.-based Palantir Technologies.

One striking example of Dtonic’s technological prowess is its contribution to curbing the spread of COVID-19, an achievement that earned the company multiple awards from the government. Controlling the virus required swift tracking of confirmed cases’ movements and monitoring their contacts. This process involved processing a wide range of data, such as CCTV footage, smartphone location data, and payment records. Traditional methods required 1,000 devices and 48 hours to perform these tasks. Dtonic, however, managed to reduce this to just 20 devices and 5 minutes—a feat that would have been impossible without groundbreaking advancements in data processing.

The foundation of Dtonic’s success lies in its proprietary Geo-Hiker technology, a system that accelerates the processing of spatiotemporal data. Most of the data we produce today is a combination of time-series and location information. Dtonic excels at standardizing and efficiently compressing this complex, abundant spatiotemporal data, turning it into actionable insights. 

Dtonic’s customer base is remarkably diverse. As CEO Jun puts it, “Any company or institution looking to drive digital transformation (DX) through data is a potential client.” He explained, “To successfully embark on digital transformation, you must start with data—especially data that reveals customer pain points. In the past, we believed a problem might have one or two causes. Today, countless data points contribute to these issues. We aggregate all this data, analyze it with AI and machine learning, and deliver actionable solutions. What sets us apart is our ability to accelerate this entire process.”

Dtonic is also actively involved in building smart cities and has developed the technology to implement smart factories and smart farms. Currently, the company is helping retail businesses make rapid decisions by providing real-time data on product pricing, inventory, and logistics. This has attracted major clients such as large domestic and international retail stores, large-scale logistics warehouses, and smart factories to join its roster.

Dtonic was originally founded in 2014 as a big data company spun off from Hyundai Motor Group’s in-house venture program. Before launching Dtonic, CEO Jun worked at renowned companies like Toshiba, Hitachi, and Hyundai Motor. He initially joined Dtonic as its research director and assumed the role of CEO in 2018 when the company pivoted to its current business model. Transitioning from an engineering role to management was undoubtedly challenging, but Jun has delivered remarkable results in just a few years.

In conversation, CEO Jun comes across as both passionate and humble. During interviews, he frequently uses the word “thankfully,” expressing sincere gratitude toward customers and investors. This attitude of humility and passion has likely played a key role in Dtonic’s success and expansion.

Recently, Dtonic won the top prize at the second annual “CJ GLO!VentUs (Global+Venture+Us)”. This program, jointly organized by CJ and the Gyeonggi Center for Creative Economy & Innovation, supports promising domestic startups with global potential by helping them scale and connect with international partners. CEO Jun expressed his appreciation, saying, “Thanks to the support of CJ and the Gyeonggi Center, we’ve been able to expand our global reach more effectively.” Indeed, Dtonic has already established overseas footholds in Hanoi, Vietnam (Southeast Asia); Dubai, UAE (MENA); and Seattle, USA (Americas). The company is also planning to open a global R&D center in the EU soon.

Dtonic previously secured 13 billion KRW ( $9.3 million) in pre-Series A funding and is now in the final stages of its Series A round. Over 40% of the new investment will be allocated to global expansion. For investors curious about how Dtonic “tonics data” to deliver value to its clients, a visit to the company and a conversation with CEO Jun might offer a glimpse into his passion, humility, and vision.

What problems is Dtonic aiming to solve?  

Today’s world generates an overwhelming amount of data, and we now have the capability to combine this data with AI technologies. As a result, digital transformation (DX) has become a necessity rather than an option across industries. In this context, where DX is a strategic priority, Dtonic focuses on addressing the challenges and ROI concerns customers face during their DX journey.

How does Dtonic solve these problems?  

We leverage our strengths in (1) data processing acceleration technology and (2) data platform expertise to minimize the resources and time required by customers during the DX process. This approach helps maximize their DX ROI and effectively resolves their challenges.

What are Dtonic’s competitive advantages and technical strengths compared to competitors?  

Dtonic’s core technology, Geo-Hiker, is a data processing acceleration engine that delivers maximum data processing speed with minimal infrastructure requirements.

Geo-Hiker offers a boosting environment capable of optimizing data by analyzing the structure and usage patterns of spatiotemporal big data using AI. During the COVID-19 pandemic, this technology reduced the number of devices required for tracing confirmed cases from 1,000 to just 20 and shortened the analysis time from two days to only five minutes.

In addition, Dtonic’s real-time multi-object tracking technology (MCMOT) enables video-based location tracking while respecting privacy concerns. Using object recognition and re-identification technologies, it ensures minimal errors and reliably tracks subjects without losing them. This technology has been applied to locate missing children and dementia patients and holds significant potential for future applications in areas such as sports, automotive, and drones.

Dtonic also excels in optimizing and customizing both software and hardware to align with the specific needs of its customers.

What products and services does Dtonic offer, and what is their current status?  

Dtonic’s core technologies include several cutting-edge solutions. Geo-Hiker is a data analysis acceleration engine designed to process and analyze large-scale, multidimensional spatiotemporal data at high speed. Another innovation is AITrackX, an AI-powered video analysis technology that utilizes Dtonic’s proprietary Multi-Camera Multi-Object Tracking (MCMOT) engine, enabling real-time tracking of multiple objects simultaneously. The company also offers EDGE/CLOUD Computing, which combines always-available cloud computing with on-site edge computing, allowing data processing to be conducted directly at the source.

Building on these core technologies, Dtonic has developed several platforms that are applied across various smart industries. D.Hub is an all-in-one data platform that integrates the processing, management, and analysis of multidimensional data into a single unified system. D.Eview is an intelligent display platform that delivers critical product information, such as pricing and inventory status, to consumers and businesses via Electronic Shelf Labels (ESL). D.Edge is an AIoT platform based on edge computing, designed to collect and analyze high-speed, large-scale data on-site and provide actionable insights across a wide range of applications.

What is the size of Dtonic’s target market, and who are its key customers?  

Dtonic’s target market is vast, encompassing all industries and organizations, including private enterprises and government bodies, that aim to achieve digital transformation. In today’s AI-driven world, digital transformation is a priority for almost everyone, making Dtonic’s potential customer base virtually limitless. 

Currently, the company is focusing on smart retail solutions, helping retail stores implement omnichannel systems and maximize the efficiency and effectiveness of their digital transformation efforts. As a result, Dtonic’s primary target customers at this stage are retail stores and logistics hubs associated with distribution processes.

What is Dtonic’s business model?  

Dtonic operates on two main revenue models. The first involves revenue from building DX infrastructure tailored to AI solutions. The second is subscription-based revenue generated from its AI solution software, providing customers with continuous access to Dtonic’s advanced technologies.

What has the Dtonic team achieved so far?  

During the COVID-19 pandemic, Dtonic made a significant contribution to K-quarantine efforts by reducing the time required for epidemiological investigations from 48 hours to just 5 minutes using its Geo-Hiker technology.

In recognition of its contributions to society and its corporate growth, Dtonic has received numerous awards from the Ministry of Land, Infrastructure and Transport, the Ministry of Science and ICT, and the Ministry of SMEs and Startups every year since 2020. In 2022, the company was honored with the prestigious Silver Tower Order of Industrial Service Merit. Additionally, Dtonic earned a top-grade TCB (Technology Credit Bureau) rating in 2023 and was designated as an Outstanding Corporate Research Institute by the Ministry of Science and ICT in 2024, further cementing its reputation for technological excellence.

Dtonic has also secured contracts with multiple large corporations, as well as major urban development projects.The company has signed MOUs with both domestic and international corporations. In August and November of this year, Dtonic was selected for the Global TIPS support program and won the top prize at CJ Glo!Ventus, accelerating its overseas expansion efforts. Reflecting its growth potential, Dtonic successfully completed a $10 million investment round in 2023.

What is the Dtonic team’s competitive edge?  

Dtonic is led by a CEO with extensive engineering experience at global companies such as Hitachi, Toshiba, and Hyundai Motor, supported by technical and management leaders with more than 20 years of expertise. Approximately 70% of Dtonic’s workforce consists of technical personnel, giving the company a strong advantage in R&D.

The team includes specialists with expertise across AI, software, and hardware, as well as professionals who have successfully executed a wide range of projects. This creates a synergy that enables Dtonic to identify new business opportunities with a strong sense of initiative and innovation.

What efforts is Dtonic making for global expansion, and what results has it achieved?  

Since 2019, Dtonic has actively participated in global acceleration and incubation programs while also attending international exhibitions to strengthen its overseas marketing efforts. The company has established subsidiaries in countries including the United States, UAE, and Vietnam, laying a solid foundation for global operations.

Dtonic also employs international business specialists fluent in at least three languages, which helps expand its global sales pipelines. The company combines direct and indirect sales strategies to focus on overseas expansion and marketing initiatives.

Currently, Dtonic is forming partnerships not only in Vietnam but also with major and mid-sized companies in Europe and Spain, further expanding its network of international collaborators.

How has the ‘CJ Glo!VentUs’ program supported your global expansion?  

The program allowed us to conduct various Proof of Concept (PoC) projects with multiple companies. This has helped us move beyond Dtonic’s existing business domains and establish a solid foundation for entering broader global markets.

Three reasons why we need investment:  

First, to secure competitiveness in the global market, it is essential to focus on the acceleration of digital transformation (DX) in advanced AI markets such as the United States and China. These countries are rapidly advancing DX across industries, and companies providing data platforms and DX solutions are experiencing exponential growth. Notably, American DX infrastructure companies like Palantir, Databricks, and Snowflake have not only achieved NASDAQ listings but are also gaining widespread global recognition.

Compared to these companies, we are confident in our ability to compete in specialized markets such as smart retail and smart cities. With adequate investment, we can strengthen our unique competitive advantages and establish a leading position in the global market.

Second, building a robust DX ecosystem is critical for sustained growth and achieving greater milestones. In the software industry, success depends on collaboration and partnerships with various stakeholders, including suppliers and startups, to maximize synergies. While our achievements thus far demonstrate strong growth potential, long-term success requires making ecosystem development a central part of our business strategy, with our solutions at the core.

This ecosystem-building approach goes beyond simply creating a collaborative network. It will also provide the foundation for expanding our technological and market competitiveness. With the necessary investment, we can accelerate growth, achieve our strategic objectives more quickly, and secure a stronger position in the global market.

Third, maintaining a technological edge demands continuous innovation and development. While our TCB first-tier rating in 2023 validates our technical expertise, it is only the starting point for future growth. In today’s fast-evolving market, sustaining a competitive advantage requires significant R&D investments to widen the technological gap with competitors. Such investments are crucial not only for short-term success but also for driving long-term growth and reinforcing market dominance.