Coupang – The Korean Unicorn

In terms of revenue growth, Coupang is one of the fastest growing online marketplaces, with revenues rising 93% year-over-year. With a product-centric interface, Coupang is similar to Amazon and has a remarkably large number of businesses under its umbrella. Read on to learn more. The Company: Coupang is a South Korean-American e-commerce company. Its founder, Bom Kim, founded the company in 2010 and it has since expanded to become the largest online marketplace in South Korea.

Coupang’s revenue growth accelerated to 93% y/y

The accelerating revenue growth is due to Coupang’s unique inventory management system. The company’s inventory turns 15 times a year, leveraging its unprecedented visibility into demand. Using GMV estimates instead of COGS, it is able to negotiate better prices from suppliers. This system requires highly advanced inventory management systems. With over a million 1P and 3P SKUs and the most warehouse space in Korea, Coupang’s inventory turnover is accelerated.

The company’s IPO raise is a sign of the growing popularity of its product. The company has 17 million active customers, a 26% increase y/y. The company’s accelerated revenue growth is a sign of a company that’s making significant progress toward profitability. The IPO’s $4.6B valuation should provide ample growth fuel and liquidity.

It has drawn $3.4 billion in venture capital funding

SoftBank is putting its money where its mouth is and investing heavily in Coupang, the Korean unicorn. Founded in 2015, Coupang has raised $3.4 billion in venture capital funding, with $2 billion of that coming in the last year alone. SoftBank is also tied to Coupang, having invested $1 billion in the company’s Vision Fund in 2016. But while Coupang is a massive validation, its losses remain unprofitable, narrowing each year.

Despite the success of its business model, Coupang is facing challenges, including competition from established brick-and-mortar retailers. The fresh money will be used to bolster Coupang’s technology platforms, such as its one-touch payment system, and create a new artificial intelligence function for purchase recommendations. SoftBank has an excellent track record of providing more funding than a company initially asks for, and Coupang is no exception.

It has a product-centric interface similar to Amazon

Unlike its rival, Coupang has an entirely different focus. Instead of focusing on seller reviews, Coupang prioritizes the consumer’s experience. Its user-friendly product-centric interface allows customers to easily browse and find products that are similar to those they already have, such as the newest iPhones. In addition, its fulfillment service ensures that every item shipped to its customers is of the highest quality. As of February 2018, Coupang has over 17 million consumers, which makes it the fourth largest e-commerce platform in Korea.

While Coupang is largely focused on the domestic market, it also hopes to expand internationally. The company said in its S-1 filing that it aims to expand its business to other countries, and it is focusing on establishing a presence in China. The company isn’t alone in its pursuit of growth, and has been making strategic moves to stay ahead of competitors. It also plans to introduce an alternative payment system that will allow users to pay for goods in multiple currencies.

It has a large number of businesses under its roof

While Coupang has enjoyed rapid growth and profitability, the company’s high-intensity work practices are causing more concerns in Seoul and New York. While the company has been criticised for high-intensity work practices, these complaints have been especially loud in South Korea. Death by overwork is not a laughing matter there. The founders of Coupang have worked with a variety of business models and industries.

The company’s different business segments are all interconnected. The 1P business is the inventory offering, and Coupang has invested heavily in this area. This expansion and improvement of service quality are driving a significant amount of new consumer interest and bringing a sizable volume of consumers into the 3P business. By increasing the range of products offered, Coupang is also increasing the economic moat of its 3P segment.