Softbank-backed Kappang quarterly losses up 180%

South Korea’s Kupang, a softbank-backed ecommerce group, reported quarterly losses, despite the Kofid-19 epidemic hitting record sales.

The company said late Wednesday that its first-quarter net loss jumped 160 percent year-over-year to ৫ 295 million, while revenue rose 744 percent to $ 4.2 billion. The loss was slightly worse than analysts had predicted.

Kupang’s disappointing results were after the online retailer’s first follow-up Debut in high profile stock market In New York in March, valued at more than bn 80bn.

The public offering, which is the largest foreign listing in the United States since Chinese e-commerce company Alibaba in 2014, helped Softbank’s net profit B 46bn on record In the most recent fiscal year of the Japanese technology team.

However, the situation has worsened since Kopang’s glittering IPO.

The group’s valuation, which at one point reached 8 118 billion, has stalled at 62 62 billion and stunned by it. A series of deaths Its courier and warehouse staff.

Copang blamed the loss on stock losses of 87m and the increase in rents and investments. With a fleet of more than 150 delivery drivers, the company has spent on building a logistics network of 100 completion centers across 30 cities. Kupang is proud that almost 100 percent of its orders are delivered on the same or next day.

The company said its active customers, or those who bought products through Kupang at least once this quarter, rose 21 percent to 16 percent. Expenses per active customer rose 44 percent year-over-year to 2 262, the group said.

Founded in 2010, Kupang is the largest player in South Korea’s highly competitive ecommerce market.

The company had promised to increase the market to 6 206 billion by 2024. According to research firm Euromonitor, South Korea’s ecommerce sector is expected to grow 11 percent this year to $ 117 billion.

But the company’s growth has been cloudy Eight employees diedLabor unions and politicians, including two subcontractors, have blamed the extra work.

Kupang, whose other investors include venture capital firm Sequoia Capital and U.S. asset manager Blackrock, denies responsibility for the deaths. The agency said only one death was officially recognized as work-related.

Kupang’s New York-listed shares fell 2.5 percent on Wednesday before the results were announced.

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