brand logo

Kapruka to utilise IPO proceeds for four new initiatives

17 Dec 2021

  • Aims to become distributor for established SL brands
  • Projects include used goods platform, B2B commerce
Kapruka Holdings Ltd. will be using the capital raised through its initial public offering (IPO) to fund four new initiatives, Kapruka Holdings Founder and CEO Dulith Herath stated at the investor forum held yesterday (16). Explaining further, he claimed: “I’m not going to invest that Rs. 500 million raised in our existing business and try to improve that, because this on its own is very efficient. Some of it will be used for infrastructure upgrades, but a majority of it goes into four projects.” The first project is business-to-business (B2B) ecommerce. Herath focused on the potential of this venture by pointing to the fact that B2B ecommerce in the world is eight times the business-to-consumer (B2C) ecommerce market. The second project is a used goods platform which will be done under a separate brand called “soldout.lk”, in order to ensure that the Kapruka brand isn’t diluted. The third project is for Kapruka to become the distributor for established brands in Sri Lanka that possess global demand, such as Dilmah, Akbar, Zesta, Dankotuwa, and Spa Ceylon. “Today, if you go to the US and buy a packet of Dilmah tea on Amazon, you will see the seller as Kapruka,” he said. The fourth project is a premiere marketplace for well-established brick-and-mortar shops in Sri Lanka which are looking for a strong ecommerce partner. The marketplace is called Partner Central. Kapruka Holdings will be offering 32.8 million ordinary voting shares representing a 20% stake at a price of Rs. 15.4 per share. The issue, which is managed by Acuity Partners, will be opened on 22 December. Founded in 2002, Kapruka is Sri Lanka’s first and largest locally owned e-commerce enterprise. The company through its website facilitates online purchases of goods for its Sri Lankan and expatriate customers. Around 57% of its sales are foreign sales, which is supported by the fact that the company caters to over 1.1 million expats Sri Lankans. The average customer base of the company has grown by over 61% over the past five years and its current customer base is around 2.7 million, of which expats amount to around 40%. The average basket volume of expats is around $ 50 and around Rs. 5,000 in the case of locals. The ecommerce conversion rate of Kapruka stands at 6.8% and its bounce rate stands at 14%, beating the respective global averages of 2.3% and 53%, respectively. A high bounce rate indicates Kapruka’s ability to convert website clicks into revenue and a low bounce rate indicates that the number of visitors who leave the website after one click is lower compared to the global average. Speaking to The Morning Business previously in early December, Herath stated: “During the last couple of years, we (Kapruka) are going over 100% Year-on-Year (YoY) because overall ecommerce has started to propel due to the lockdown and due to the limited products availability in the country.” This claim is supported by the financials disclosed, which shows that the company’s topline has increased by over 119% YoY during the first seven months of FY2022 and its profitability has increased by 12,756% YoY over the same period due to the effect of economies of scale.

Kapruka

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!


More News..