Korean eCommerce company Coupang announced that it will be getting a $1 billion investment from a SoftBank subsidiary, according to a Wednesday (June 3) release.
The investment is expected to close next month, the companies said. The latest $1 billion infusion brings total funds raised by Coupang to almost $1.5 billion in the past year alone.
Bloomberg reported Wednesday (June 3) that the SoftBank stake values Coupang at about $5 billion. The company’s leadership said earlier this year that Coupang is not seeking to tap the public markets via an initial public offering.
SoftBank’s capital will be used to fund Coupang’s continuing investments in end-to-end fulfillment service and same-day delivery operations. The company will also expand its R&D presence in Silicon Valley and Seattle, in addition to Shanghai and Seoul. Coupang has said that it has more than 25 million mobile application downloads and the highest number of active users in Korea, making it the largest player in that country’s eCommerce industry. Mobile sales account for as much as three quarters of Coupang’s total top line and the company has said its GMV has been growing at a rate of 80 percent annually.
In addition to boasting the largest end to end fulfillment operations in Korea, Coupang uses a fleet of delivery personnel, known as “Coupang Men” to ensure last-mile services.
Masayoshi Son, Chairman & CEO of SoftBank Corp., said, “SoftBank aims to grow by investing in Internet companies around the world and supporting disruptive entrepreneurs who share a common vision to contribute to people’s lives through the Information Revolution. SoftBank looks forward to supporting Coupang as they further revolutionize eCommerce.”
In addition to SoftBank, Coupang is backed by a number of institutional investors. The roster includes Greenoaks Capital Management, Rose Park Advisors, and a number of large funds managed by – among others — BlackRock, Wellington Management Company LLP and Sequoia.
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