With revenues exceeding $12bn (2020) and a market share exceeding 25% in Korea, Coupang is no minnow.
The company operates a marketplace for home goods, apparel, beauty, electronics and a fresh business (called Rocket Fresh).
Like Amazon, it also has an advertising business which has blossomed spectacularly.
The only sour note is the share price which is now $22 far below its March ’21 IPO of $35.
Despite the stellar top line (2020 revenues were almost double 2019), the company has yet to make a profit. Its gross margin is 16% and despite automation, the company employs over 50,000.
That seems to be the rub frazzling investors. With Covid rampant, running costs are soaring. The fresh food business is also capital intensive.
Cloud computing has been a saviour for Amazon’s financials. Perhaps Coupang can develop a close equivalent?