[THE INVESTOR] Korean e-commerce giant Coupang said on Nov. 21 it has secured additional funds of US$2 billion from SoftBank Group.
It had earlier received funding of US$1 billion from the Japanese conglomerate in 2015. The latest investment has been made by affiliate SoftBank Investment Advisers that funds “growing businesses run by disruptive innovators.”
SoftBank CEO Masayoshi Son(left) and Coupang CEO Kim Bom
“The vision and leadership of Coupang CEO Kim Bom has made the company one of the most innovative and leading e-commerce companies in Korea. We are proud to join hands with Coupang, which will continue to provide more value to customers,” SoftBank CEO Masayoshi Son said in a statement.
Founder and CEO Kim also said that the company will continue to expand its business through the funding in areas including data, logistics and a payment platform by cooperating with SoftBank.
The Korean firm has been growing its business here by launching diverse new services, including grocery delivery service Rocket Fresh and same-day delivery service. It gained popularity with its signature Rocket Delivery Service that promises delivery within 24 hours. More recently, it launched an offline food ordering app Coupang Eats which allows users to place their orders before arriving at any outlet.
According to the company, its sales in 2018 are expected to increase from 2.68 trillion won (US$2.36 billion) last year to around 5 trillion won. Nevertheless, it still has not seen a profit from its operations, with the accumulated operating losses during the last three years having reached around 1.74 trillion won.
Besides SoftBank, Coupang also secured investments worth US$100 million and US$300 million from Sequoia Capital and Black Rock, respectively, in 2014. It also received a 300 billion won loan from Goldman Sachs in August 2017.
By Song Seung-hyun (firstname.lastname@example.org)