Coupang: Amazon Korea with rising profits and global ambition

Coupang $CPNG, previously considered one of the failed IPOs of 2021, is now turning into a profitable e-commerce leader in Asia. Despite the stock still trading below its issue price, the company has seen a fundamental turnaround in fundamentals - growing, profiting and expanding.

• 23.6 million active customers - roughly half of South Korea's adult population
• Speed and quality of delivery: most orders delivered before dawn
• End-to-end model: in-house logistics, warehouses and couriers (100+ distribution centers)
• WOW program - combination of Prime + Netflix + food delivery
• Easiest returns on the market → extremely high customer loyalty

Year-on-year sales growth

Q1 2021

74 %

Q4 2021

34 %

Q4 2022

5 %

Q4 2023

23 %

Q1 2025

11 %

• Successful entry into Taiwan (as opposed to Japan)
• Acquisition of Farfetch (luxury fashion in Europe) = entry among global retailers
• Emphasis on organic growth and acquisitions

• Current price: $27.31
• Still 23% below IPO price ($35)
• +24% YTD = signal of renewed investor confidence
• Market capitalization: $50 billion
• Profitable company - exceptional among e-commerce companies outside the US/China

Coupang $CPNG is an example of a company that has "worked" its way up - from a loss-making IPO to an effective technology leader with real profitability and customer loyalty. Its logistics network, technology and customer experience create a defensive bulwark that is hard to replicate.