South Korea doesn’t need an online “everything” retail store like Amazon; it’s got its own in the form of Coupang. The online service is now US$100 million richer, thanks to a round of financing courtesy of venture company Sequoia Capital.
A TechCrunch report stated that the deal now puts Coupang’s value at over US$1 billion. Other backers that joined Sequoia include Greenoaks Capital Management, Rose Park’s Disruptive Innovation Fund and LaunchTime.
Coupang’s Chief Financial Officer Richard Song said that the company has grown faster than most e-commerce companies. “With these resources, we can set our sights even higher. This financing is highly strategic as we continue to go after a rapidly growing US$45 billion market.”
Other things to note about the Korean online goods and retail store: at least 70 per cent of its sales are done on mobile devices, and a majority of those sales are on merchandise rather than on deals. Founder Bom Kim said that the company generated about US$650 million in sales in 2012 and surpassed US$1 billion in “gross annual merchandise volume” in 2014.
The noteworthy thing about the American company Sequoia is that it has heavily invested in Asian territories like China, putting US$1.8 billion in 100 or more deals in the region. The chart at the bottom highlights the venture capital’s rising investment deals from 2009 to 2014.