Earlier as we speak, South Korean e-commerce and supply large Coupang filed to go public within the United States. As a non-public firm, Coupang has raised billions, together with capital from American enterprise capital agency Sequoia and Japanese telecom large SoftBank and its Vision Fund.
Coupang’s providing, coming amidst the general public debut of quite a lot of well-known expertise manufacturers, will probably be an enormous affair. Its first S-1 submitting signifies that its IPO will elevate capital within the vary of $1 billion, far bigger than the $100 million placeholder that’s extra widespread.
But the corporate’s scale makes its lofty IPO fundraising targets cheap. Coupang is large, with revenues north of $10 billion in 2020, and in enhancing monetary well being because it scales. And its income development has accelerated.
Perhaps that explains why the corporate is reportedly focusing on a valuation of $50 billion.
This afternoon, let’s dig into the corporate’s historic development, its enhancing money stream and its narrowing losses. Coupang’s debut will create a splash when it lands, so we owe it to ourselves to grok its numbers.
And as there are different e-commerce manufacturers with a supply perform ready within the wings to go public — Instacart involves thoughts — how Coupang fares in its IPO issues for variety of home startups and unicorns.
Coupang’s surging scale
The firm’s development throughout the final half-decade is spectacular. Observe its yearly income totals from 2016 by way of 2020:
- 2016: $1.67 billion
- 2017: $2.40 billion (+43.7%)
- 2018: $4.05 billion (+68.8%)
- 2019: $6.27 billion (+54.8%)
- 2020: $11.97 billion (+90.9%)
Sure, a few of that 2020 development is COVID-19 associated, however even taking that into consideration, Coupang’s income development is nothing wanting implausible. And what’s higher is that the corporate has reduce its losses lately: