Coupang debuts on the NYSE today.
It's known as the "Amazon of South Korea." There's a lot more to it than that. I dug in with @sidharthajha @daveambrose @Stewbradley @kjlabuz @averyklemmer @nbashaw.
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readthegeneralist.com/briefing/coupa…
It's known as the "Amazon of South Korea." There's a lot more to it than that. I dug in with @sidharthajha @daveambrose @Stewbradley @kjlabuz @averyklemmer @nbashaw.
↓
readthegeneralist.com/briefing/coupa…
1. "Amazon of South Korea"
It's a solid but incomplete description.
$CPNG is really like "Amazon x Instacart x DoorDash."
• Amazon: Core platform
• Instacart: Rocket Fresh
• DoorDash: Coupang Eats
Oh, and payments, too.
It's a solid but incomplete description.
$CPNG is really like "Amazon x Instacart x DoorDash."
• Amazon: Core platform
• Instacart: Rocket Fresh
• DoorDash: Coupang Eats
Oh, and payments, too.
2. Started as a $GRPN clone
@daveambrose described it as the "greatest business pivot no one knows about." That's apt.
$CPNG started as a daily deals site. It did well, but really took off when they pivoted to an $EBAY-style marketplace.
@daveambrose described it as the "greatest business pivot no one knows about." That's apt.
$CPNG started as a daily deals site. It did well, but really took off when they pivoted to an $EBAY-style marketplace.
3. Vertically-integrated.
$CPNG has one of the most remarkable logistical backends in the world.
• 100 fulfillment centers
• 15K *employee* drivers
• 25M sqft of warehousing
• Speciality trucks
• Sustainable packaging
Genuinely remarkable.
$CPNG has one of the most remarkable logistical backends in the world.
• 100 fulfillment centers
• 15K *employee* drivers
• 25M sqft of warehousing
• Speciality trucks
• Sustainable packaging
Genuinely remarkable.
4. Customer-obsession
Every retail company tries to put the customer first. But $CPNG takes it to the next level.
Example: $CPNG's manual tells employees *how to knock* on the door. Or to make sure not to ring a doorbell if a baby's at home.
Can you imagine $AMZN doing this?
Every retail company tries to put the customer first. But $CPNG takes it to the next level.
Example: $CPNG's manual tells employees *how to knock* on the door. Or to make sure not to ring a doorbell if a baby's at home.
Can you imagine $AMZN doing this?
5. Becoming a super-app?
$CPNG's proposed valuation is $50 billion, about 2.97x NTM revenue. That's steep for pure-play e-comm which usually sees NTM multiples of 0.75-2.00.
But if $CPNG's a budding super-app, it might make sense. More in the next thread...
$CPNG's proposed valuation is $50 billion, about 2.97x NTM revenue. That's steep for pure-play e-comm which usually sees NTM multiples of 0.75-2.00.
But if $CPNG's a budding super-app, it might make sense. More in the next thread...
Continuing...
Super apps like $BABA get valued differently: 4.5x NTM revenue. It seems like $CPNG's moving in this direction.
• Growing food delivery
• Leaning into payments
Will that be enough?
Super apps like $BABA get valued differently: 4.5x NTM revenue. It seems like $CPNG's moving in this direction.
• Growing food delivery
• Leaning into payments
Will that be enough?
6. Impressive management
Bom Suk Kim is an executor. He's helmed $CPNG through four distinct phases succeeding in each.
• Phase 1: $GRPN clone
• Phase 2: $EBAY clone
• Phase 3: $AMZN clone
• Phase 4: Uniquely $CPNG
The rest of the team is impressive too...
Bom Suk Kim is an executor. He's helmed $CPNG through four distinct phases succeeding in each.
• Phase 1: $GRPN clone
• Phase 2: $EBAY clone
• Phase 3: $AMZN clone
• Phase 4: Uniquely $CPNG
The rest of the team is impressive too...
Continuing...
$CPNG has recruited well.
• Gaurav Anand, CFO: Flipkart, Amazon
• Daejun Park, BD: LG, Naver
• Thuan Phan, CTO: Former Uber CTO
• Minette Bellingan, Private Label: Amazon
$CPNG has recruited well.
• Gaurav Anand, CFO: Flipkart, Amazon
• Daejun Park, BD: LG, Naver
• Thuan Phan, CTO: Former Uber CTO
• Minette Bellingan, Private Label: Amazon
7. Compounding revenue
$CPNG is unprofitable. But they are growing revenue extremely well. From 2016 to 2020, revenue compounded by 60% year over year.
It reached $12 billion in 2020. That was aided by covid, of course.
$CPNG is unprofitable. But they are growing revenue extremely well. From 2016 to 2020, revenue compounded by 60% year over year.
It reached $12 billion in 2020. That was aided by covid, of course.
8. Stiff competition
If $CPNG fear anyone it will be Naver. Known as the "Google of South Korea," Naver is a search giant with tentacles everywhere.
While they lag behind $CPNG in e-commerce, they're much further ahead in payments and food delivery (via investment).
If $CPNG fear anyone it will be Naver. Known as the "Google of South Korea," Naver is a search giant with tentacles everywhere.
While they lag behind $CPNG in e-commerce, they're much further ahead in payments and food delivery (via investment).
This is a fascinating, complex company.
Hopefully, this breakdown gives a sense of the business, but if this got you interested, you might like our full briefing. It's open to everyone :)
readthegeneralist.com/briefing/coupa…
Hopefully, this breakdown gives a sense of the business, but if this got you interested, you might like our full briefing. It's open to everyone :)
readthegeneralist.com/briefing/coupa…
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