Roehl Niño Bautista · · 1 min readKorean ecommerce major Coupang cuts losses as shares jump 20%
South Korean ecommerce firm Coupang saw its US shares surge 20% after it saw its losses narrow, reported Bloomberg.
Its operating loss for Q1 2022 dropped by almost 22.5% to US$205.7 million this year from US$267.3 million last year, as revenue hit US$5.1 billion for a 22% growth in the reported quarter. The firm implemented cost-cutting measures to weather the decline in online retail activity.
“We will continue to grow significantly faster than the ecommerce segment and continue to gain share across all of our categories,” Bloomberg quoted Bom Kim, CEO of Coupang. The executive said that while South Korea’s ecommerce market grew by 8%, Coupang saw a 30% uplift.
Data suggests ecommerce growth may be slowing down in the near future, as demand faces declines due to easing Covid-19 restrictions and slowdowns in consumer spending, among other factors.
SoftBank’s Vision Fund recently sold US$1 billion worth of its Coupang shares. Last year, Coupang also teamed up with fintech firm Payoneer for a cross-border transaction boost
Editing by Miguel Cordon and Lorenzo Kyle Subido
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