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Coupang IPO를 앞두고
이번 글은 시간이 없어서 영어로 써놓은 것을 그냥 올려드립니다.
죄송합니다.
Be my unicorn!
Ticker : CPNG
Coupang is planning to list on the New York Stock Exchange (NYSE) in a $1-billion offering. The company, which delivers goods and food to homes and businesses, has been loss-making since its founding in 2010 and has been facing cutthroat competition from money-is-no-object local e-commerce players and, in recent years, from the likes of Amazon.
While the market remains fiercely competitive, in just 10 years e-commerce giant Coupang has managed to become the country’s most popular online retailer. The Seoul-based company owes its dominant position in part to its slate of fast delivery options, which is powered by its own logistics business, Rocket Delivery. Shoppers can choose from millions of products, many of which are available for overnight or same-day delivery, from fresh produce to tablets. This year it garnered the No. 2 spot on CNBC’s 2020 Disruptor 50 list of the world’s most innovative companies. In addition, Coupang’s logistics investments have paid off, as 99.3% of orders placed on its site are delivered within one day, the company said. Coupang now delivers 3.3 million items each day, up from an average of 2.2 million units per day at the end of 2019.
By contrast, it even struggled to make money during the pandemic despite a delivery boom due to lockdowns and work-at-home guidelines. In 2020, it managed to lose $474.9 million and now has an accumulated loss of over $4 billion.
SoftBank initially invested in Coupang in 2015, adding it to a stable of e-commerce hits that included 25% of China’s Alibaba Group Holding Ltd, before placing it under the fund. The e-trailer has grown rapidly during stay-home policies while the COVID-19 pandemic has forced other portfolio firms like Indian hotel chain Oyo to scramble to preserve cash.
While start-ups in the red have traditionally gone to the Nasdaq for listing, the NYSE listing rules allow companies with no record of income to go public on the board if they meet other benchmarks, such as those related to cash flow and revenue. Analysts see Coupang’s $50 billion valuation as feasible given its first-mover status and as it expands beyond replacing brick-and-mortar retail with a rising number of online channels. According to a report from Reuters, Coupang is aiming for a valuation of around $50 billion in its initial public offering (IPO).
If you need more information about Coupang, this video will help you to get the information you want:
https://www.cnbc.com/video/2019/12/06/inside-coupang-south-koreas-most-valuable-start-up.html
How much is Coupang worth?
Aiming to be the "Amazon of South Korea," Coupang is now worth more than $2.5 billion according to FORBES' sources. According to a report from Reuters, analysts see Coupang’s $50 billion valuation as feasible given its first-mover status. There is a huge gap between 25 billion and 50 billion. This is one of the point we have to consider.
Is Amazon popular in Korea?
Coupang, a SoftBank-backed start-up, is crushing Amazon to become South Korea's biggest online retailer. In just 10 years Coupang has quickly risen to become South Korea's top online retailer. Coupang currently delivers 3.3 million items each day, up from an average of 2.2 million units per day at the end of 2019.
Can we say Coupang is exactly same as Amazon?
Many American presses illustrate Coupang as Korean Amazon but it is pretty wrong. As we understand, the market share of Coupang is totally different from that of Amazon in America. Of course, the innovative and fierce marketing approaches and strategies of Coupang can be compared to those of Amazon. Also, the operating margin of Coupang is still minus in last quarter in 2020.
How are Market estimation and Competition of online commerce in Korea?
According to a 2020 market research report by the International Trade Administration, the South Korean market for e-commerce sales reached $115.4 billion in 2019, with online purchases exceeding that of hypermarket sales beginning in 2016.
In 2019, travel and transportation services were the most frequently purchased items sold via e-commerce platforms.
However, food delivery orders have been growing at the fastest rate, multiplying by eightfold in the five years ended 2019. Also, mobile commerce is the primary driver of the country's strong growth in e-commerce purchases, with purchases making up more than 61% of the total market value sold online.
So what do you do? Are you ready to buy this stock?
Personally, I have been waiting for IPO of Coupang for a year. I am a loyal customer of Coupang. Frankly speaking, I can say I am a big fan of this company. I have been using its service for about 3 years. I think American analysts are too positive about its worth but I believe still this company is competitive and innovative basis on my experience.
이것은 제 생각을 정리한 것일 뿐, 절대 투자를 추천드리는 글이 아닙니다.
다만, 저는 아주 오랫동안 쿠팡의 IPO를 기다려 왔고,
쿠팡의 서비스를 이용해본 경험을 바탕으로 투자하고 싶은 회사라는 것만 말씀드립니다.
