Coupang, "The Amazon of South Korea" went public last week.

It was the largest IPO of 2021 to date.

Folks are quick to compare Coupang to Amazon.

So is buying $CPNG today, like buying Amazon in 1997?

The details $CPNG 👇
1/ First a little about Coupang

In South Korea there is no Amazon

There’s Coupang.

They specialize in “rocket delivery” It’s crazy fast.

99.6% of orders are delivered in 24hrs
2/Harvard Dropout Founder

Bom Suk Kim founded Coupang in 2010, after dropping out of Harvard

He created Coupang to revolutionize the e-commerce industry in his home country, South Korea.
3/ Coupang is super innovative

They do a lot of Amazon stuff like Same-day delivery, but Coupang goes even further.

One example: To return and item, customers just place it on their doorstep, no box, no postage. A driver picks it up within hours.
4/Competition is fierce

South Korea will be the 3rd largest ecommerce market in the world this year. Behind only the US & China.

Delivery is commonplace. Coupang is #1, but it’s competitors are investing heavily in last-mile delivery.
5/Coupang is burning CASH

Ask Amazon, fast delivery of any product is crazy expensive.

Coupang lists “logistics costs” as cost of sales in it’s S-1.

According to PYMTS, their logistics costs ballooned to $10B last year alone.
6/ Why list in the US?

Bom’s a baller. He wants larger investors.

Like Amazon’s Bezos, he’s betting expensive logistics pays off in the longterm.

To do that, they need access to a large pool of investors (AKA Wall Street)
7/No AWS

Unlike Amazon, Coupang doesn’t have the cash machine that is AWS.

So offsetting their expansion and logistics costs is tougher. No sweet, sweet cloud profits.

But losses are narrowing. Last year, Coupang posted a $568m loss, down from $770m the year before.
8/The IPO

The stock $CPNG was up as much as 40% after it’s debut.

The company raised a cool $4.55B and as of tweeting sitting at a market cap of $85B

Amazon market cap on day 1: $438M ($717M '21 Dollars)

Coupang is valued 85X Amazon from the drop. 👀 Scary
9/Opportunities

South Korea’s e-commerce market is expected to reach $206B by 2024 (NYT)

It’s a big pie, and Coupang can get a lot of that pie with it’s new cash.

Plus, their S-1 hints at expansion into new markets and territories outside of South Korea.
10/Like this?

I tweet about business, tech, and engineering. Hit follow for more: @HatchKolby

If this gets a lot of likes, I’ll go deeper on Coupang.

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