Coupang's IPO on the NYSE hopes to raise $3.6bn valuing the company at $50bn
The South Korean e-commerce company Coupang Inc. will be the largest IPO of an Asian company since China's Alibaba went public in 2014, when it makes its initial public offering on Wall Street on 11th March. Hailed as South Korea's Amazon, the online shopping portal was founded by Bom Suk Kim in 2013 and several of the company executives previously worked at Amazon. Coupang is now one of the three largest private sector employers in South Korea.
Coupang is an end-to-end e-commerce logistics company offering year round same day or next day delivery, creating an entire customer experience from app through to delivery, via its integrated logistics network of technology and infrastructure. The company has 100 fulfilment and logistic centres in over 30 cities and 15,000 drivers, making it the largest directly employed delivery fleet in South Korea.
70% of Korean's live within 10 kilometres of a Coupang delivery centre. With full supply chain visibility, using machine learning and AI systems, create a unique customer experience, optimise inventory procurement and risk, which in turn benefits suppliers. This logistics network guaranteeing that nearly all orders are delivered either same day or next day, allowing customers to order up to midnight and their goods arrive by 7am.
Coupang has built the largest B2C network in Korea and the company stated, "We believe that our end-to-end delivery infrastructure, including the ability to control our last-mile delivery logistics, is a key competitive advantage." Logistic costs, including cost of sales, has increased from $3.8bn in 2018 to $10bn in 2020.
Amazon initially broke the consumer purchase mould, by creating an online portal, whereby customers could not only search for the exact product they needed, but also have the item delivered quickly and safely. Coupang has simply brought that concept to its home market and it seems that any item is only hours away from the click of a customer placing their order.