Let’s examine the financial health of the South Korean e-commerce giant
Earlier today in the south Korean e-commerce and delivery giant Coupang went public in the United States. As a private company, Coupang has raised billions, including capital from American venture capital company Sequoia and Japanese telecommunications giant SoftBank and its Vision Fund.
Coupang’s offering, on its public debut from a number of well-known technology brands, will be a daunting proposition. The initial S-1 filing indicates that the IPO will raise $ 1 billion in capital, far larger than the usual $ 100 million wildcard.
But the size of the company makes its high IPO fundraising goals reasonable. Coupang is huge, with sales exceeding $ 10 billion in 2020 and financial health improving as it scale. And sales growth has accelerated.
Perhaps this explains why the company is reportedly aiming for a $ 50 billion valuation.
This afternoon, let’s examine the company’s historical growth, improved cash flow, and reduced losses. Coupang’s debut is set to make a splash when he lands, so we owe it to ourselves to work out his numbers.
And since there are other ecommerce brands with a delivery feature waiting in the wings to go public, Instacart thinks about how IPO coupang tariffs matter to a large number of domestic startups and unicorns.
Coupang’s rapid scale
The company’s growth over the past half decade has been impressive. Note the annual income from 2016 to 2020:
- 2016: $ 1.67 billion
- 2017: USD 2.40 billion (+ 43.7%)
- 2018: $ 4.05 billion (+ 68.8%)
- 2019: $ 6.27 billion (+ 54.8%)
- 2020: USD 11.97 billion (+ 90.9%)
Sure, some of that growth in 2020 is related to COVID-19, but even with that in mind, Coupang’s sales growth is nothing short of fantastic. And what’s better is that the company has reduced its losses in recent years: