Coupang is a South Korean e-commerce giant. Coupang recently debuted in the market when it opened its IPO on the 11th of March 2021. Since then, it has surged to a phenomenal valuation of about $100 billion.
The company set its foundation in 2010. Its founder is a billionaire named Bom Suk Kim. Its incorporation is in the United States of America. Coupang is famous for its same-day or next-day delivery service of millions of unique items. This kind of customer service is one of its kind and is deemed extraordinary. Coupang claims to deliver 99% of its deliveries within a day.
Th company has its headquarters in Seoul, South Korea. Coupang has an annual revenue of about US $6 billion. The company is multi-national and has its offices in several other countries including Beijing, Shanghai, Seattle, etc. It is currently backed by SoftBank group corporation which owns about 35% of the company.
IPO & Valuation
Coupang valuation is currently at around $109 billion after its debut in the market on Thursday. It was one of the biggest US initial public offerings.
The share price of Coupang has raised to almost 81%. The starting price was $63.50. Initially, the company decided to price its shares at the IPO at around $35 per share. This price was higher than the average range of around $34. This resulted in marking the market value of Coupang at $60 billion.
Coupang has the backing of SoftBank corporation. Recently, it has announced $100 billion vision funds. It is to cater to the annual losses suffered in March last year. Coupang is a diverse application that sells everything from miniature toys to large furniture. It has about 5 million unique products and a fantastic delivery system.
Recently, the company has expanded its business into food delivery as well. An application namely Coupang Eats has been designed for this particular purpose. The company aims to invest in 50 thousand more jobs and money for its organization. Moreover, research and development is going on the specific techs the company will provide for enhancing productivity.
Coupang has been increasing in profits since the last fiscal year. Its sales are ever-increasing and reached up to 91% last year. Furthermore, the company has increased leads and reduce unnecessary overheads.
It is remarkable that despite being the company offering its debut IPO, it has become the biggest in the States this year. This happened when it overcame the then best of dating application Bumble Inc. As a result, Coupang’s valuation has also increased considerably which was previously a mere $9 billion in 2018.
Importance in market
The reason of large valuation is the covid-19 pandemic. The e-commerce market is on the rise because of the increasing trend of working and buying from home. Therefore, Coupang becomes the e-commerce giant of South Korea. It has surpassed every other sector in the country to become the market leader. The investors are converging to become its shareholders due to this ongoing pandemic.