Ricardo Pillai
3 min read
In This Article:
We came across a bullish thesis on Coupang, Inc. (CPNG) on GabGrowth’s Substack. In this article, we will summarize the bulls’ thesis on CPNG. Coupang, Inc. (CPNG)'s share was trading at $28.47 as of 9th June. CPNG’s trailing and forward P/E were 203.36 and 129.87 respectively according to Yahoo Finance.
A person browsing the world's largest e-commerce marketplaces for the perfect product.
Coupang, founded in 2010 by Harvard dropout Bom Kim, has transformed from a daily-deals startup into South Korea’s largest and most advanced e-commerce and logistics powerhouse, often dubbed the “Amazon of Korea,” though this comparison understates its broad ecosystem. Kim’s vision began with a focus on viral bargain offerings, quickly growing Coupang’s customer base to millions.
However, recognizing the unsustainable nature of a deal-driven marketplace, Kim made a bold pivot in 2014, transforming Coupang into a fully integrated e-commerce retailer with its own logistics network. This shift gave birth to “Rocket Delivery,” an ultra-fast, reliable shipping service that revolutionized Korean online shopping by guaranteeing same-day or next-day delivery.
Heavy capital infusion from investors like Sequoia, BlackRock, and SoftBank fueled rapid expansion, including hundreds of fulfillment centers that brought 70% of South Koreans within 10 minutes of Coupang’s warehouses. By 2018, the company neared $5 billion in revenue, dominating over a third of Korea’s e-commerce market. Simultaneously, Coupang diversified, launching Rocket Fresh for grocery delivery, Coupang Eats in the food delivery space, Coupang Pay for fintech services, and Coupang Play, a streaming platform bundled with its popular Rocket WOW subscription program. Rocket WOW, similar to Amazon Prime, drives customer loyalty and monetization, boasting around 15 million members by the end of 2024 despite price hikes.
In 2021, Coupang went public on the NYSE in a $4.6 billion IPO, marking the largest U.S. tech IPO that year and affirming its dominant market position. Though international expansions into Japan faltered, Taiwan remains a key overseas market. Coupang’s careful but ambitious moves continue, including a recent $500 million acquisition of Farfetch’s luxury fashion marketplace assets, signaling global ambitions beyond Korea. With a vertically integrated logistics network, fintech innovations, and a growing ecosystem, Coupang exemplifies founder-led, long-term strategic vision — reshaping retail, delivery, and digital services in Korea and aiming to extend its footprint globally.
