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SoftBank-backed Coupang quarterly losses fell 180%

South Korea’s Coupang, an e-commerce group backed by SoftBank, has reported a quarterly increase in losses despite the Covid-19 pandemic despite its record sales.

The company said Wednesday that its net loss for its first quarter fell 180 percent to $ 295 million a year, while revenue was $ 74 billion at $ 4.2 billion. The loss has been slightly worse than analysts forecast.

The disappointing results for Coupang were the first after the online trader high-end stock market debut In New York, in March, it was valued at more than $ 80 billion.

The initial public offering, which in 2014 was the largest foreign foreign exchange company in the U.S. e-commerce company Alibaba, helped boost SoftBank’s net profit. To reach a record $ 46 billion At the last event of the Japanese technology team.

However, Coupang’s situation has worsened since his bright IPO.

The group’s valuation, which at one time stood at $ 118 billion, has fallen to $ 62 billion and dead bundle of his messengers and store workers.

Coupang attributed the loss to $ 87 million in cost compensation and an increase in hiring and investment. The company has spent a lot of time building a logistics network of 100 filling centers in 30 cities with a fleet of more than 15,000 delivery drivers. Coupang says it delivers 100% of its orders almost the same day or the next day.

The company said its active customers or those who bought goods through the Coupang for at least a quarter rose 21 percent to 16 million. The group said spending per active customer increased by 44 percent year-on-year to $ 262 a year.

Founded in 2010, Coupang is South Korea’s largest and most competitive e-commerce player.

The company projected growth of $ 206 billion by 2024. According to research firm Euromonitor, South Korea’s e-commerce sector is likely to grow by 11% this year to $ 116 billion.

But the company’s growth has been clouded deaths of eight workers, including two subcontracts, attributed to overwork by unions and politicians.

Coupang, its other investors, including venture capital firm Sequoia Capital and U.S. asset manager BlackRock, deny responsibility for the deaths. The company said they have officially recognized only one death from the job.

Shares in Coupang’s New York shares fell 2.5 percent before the results were announced on Wednesday.

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