South Korean ecommerce giant Coupang is reportedly in talks with the Indian government as it plans to enter the Indian market, seeking to tap into one of the world’s largest ecommerce landscapes. Government officials have revealed that Coupang, listed on the New York Stock Exchange, has expressed its interest in establishing its presence in India, with the South Korean government having submitted an application on the company’s behalf.
Coupang, headquartered in Seoul, will be entering a highly competitive ecommerce market in India, where it will vie against major players like Flipkart, owned by Walmart, and the US-based Amazon. Additionally, there are several other well-established startups and corporate players in the segment, including Nykaa, Meesho, JioMart, and Tata Digital. Ecommerce has emerged as one of India’s largest startup sectors, attracting a significant influx of investment totaling $12.45 billion between April 2021 and March 2022, resulting in the creation of 24 unicorns, according to Inc42 data.
Coupang’s interest in the Indian market comes after the company decided to exit Japan, where it had initiated grocery delivery operations two years ago. The move was driven by factors such as Japan’s prevalent convenience store culture and a significant portion of the senior population that is less accustomed to online shopping. However, in India, Coupang would not face the same challenges.
With more than 500 million projected ecommerce users in India by 2030, growing at a compound annual growth rate (CAGR) of 12%, as per Inc42’s ‘State of Indian Ecommerce Report Q2 2023’, the Indian market presents a lucrative opportunity for Coupang’s expansion.
Aside from its ecommerce services, Coupang offers Rocket Deliver, a flagship service that guarantees next-day delivery if orders are placed before midnight. The company also operates Rocket Direct Purchasing, ensuring that all imported goods purchased on Coupang are delivered within three days. Additionally, Coupang has ventured into food delivery with Coupang Eats, a grocery delivery vertical called Rocket Fresh, and even offers a subscription video streaming service called Coupang Play.
With an annual revenue of $20.6 billion and an EBITDA of $118.95 million in 2022, Coupang’s financial figures surpass those of India’s homegrown ecommerce companies. If Coupang successfully enters the Indian market, it will be interesting to observe the impact it has on the existing ecommerce giants in India and the overall dynamics of the industry.
