SoftBank doubles down on Korean online retailer Coupang with US$2 billion investment

SoftBank Group Corp’s Vision Fund is investing an additional US$2 billion (HK$15.6 billion) in South Korea’s top e-commerce firm Coupang, the retailer said on Tuesday, as the loss-making start-up seeks to cement its market dominance.

Coupang has since grown rapidly to become the biggest player in South Korea’s e-commerce market. It clocked 2.7 trillion won (HK$18.6 billion) in revenue last year, with its online sales almost as much as the next three largest e-commerce sites in the country combined, according to research firm Statista.

However, it has also suffered large losses, totalling 1.9 trillion won over the past five years, as it poured money into building new technology and its logistics infrastructure.

“The US$2 billion we are receiving now is exciting, because we can invest in more technology platforms that enable this innovation,” Coupang founder and chief executive Bom Kim said.

In the race to differentiate itself in a market crowded with delivery companies and big conglomerates, Coupang has moved beyond being just a website and a collection of warehouses and built up a huge delivery network.