30 November 2021: Ahead of its upcoming initial public offering (IPO), Kapruka, the pioneering e-commerce platform that has evolved into Sri Lanka’s largest locally owned global e-com platform, reflects on its journey thus far, and the large corporate footprint and client-base it has developed and served throughout the years.
Having launched back in 2002 as a start-up by founder Dulith Herath, with a capital of less than $1,000, Kapruka has transformed into the largest locally-owned ecommerce Company. It is now a multi-billion-rupee enterprise, without any external investors, using a non-marketplace e-commerce model with fully integrated delivery, serving a wide variety of both local and expatriate Sri Lankan clientele. The company has since been benchmarked and recognized by global giants such as Amazon.com. Being the local e-com ‘master-seller’ in Sri Lanka, Kapruka has also enabled an abundance of aspiring local producers and sellers to vend their products on the site. Kapruka stocks over 135,000+ products, has partnerships with 500+ renowned brands and serves over 1.1 Mn expat clients. The Company has over 32,000 sqft of warehouse space and over 100+ delivery vehicles to support its operations. The Company has received numerous global & local recognitions and accolades throughout its journey.
Kapruka is the pioneer local e-commerce website that has thus far ventured into cross-border exports as it provides a marketplace for premier Sri Lankan brands such as Dilmah, Samahan and Akbar Tea, on global platforms such as Amazon, Etsy, eBay and Walmart. The Company also has a wide selection of its very own branded products, from bakery items to floral arrangements and many more. Known for the convenience it offers by accepting all payment methods, including mobile pay and cryptocurrencies, and having some of the most affordable delivery charges, Kapruka.com is notably popular amongst the youth of Sri Lanka. Towards extending its corporate footprint and services to the larger international market through the ‘Kapruka Global Shop Service’, Kapruka has set up global offices in many countries such as The United States, United Kingdom and Australia, scaling up its operations, while readying itself to enter the next phase of growth.
Commenting on Kapruka’s extensive corporate footprint, Founder and Chairman, Dulith Herath, stated, “Over the past 19 years Kapruka strived to serve its extensive client-base with the highest quality customer care. Its growth has seen it expand to the larger international market, enabling local vendors to receive exposure to leading foreign chains and clientele. With an integrated set-up that ensures every step of the customer experience – from purchase to delivery – is optimized, Kapruka provides unmatched levels of customer convenience. We look forward to scaling up even further with the Initial Public Offering, allowing the public to invest in our operations, taking our world-class e-commerce platform to the next-level.”
Kapruka aims to raise LKR 505.5Mn to bolster its business potential, through the initial public offering on the Colombo Stock Exchange (CSE). The Company intends to list on the Main Board of the CSE and could possibly be turning a new page as the first-ever listed e-commerce company in Sri Lanka. With an attractive valuation at 10x forward PER, and a DCF valuation of LKR 3 Bn, the Company implies an upside of 33% to the IPO investors. Kapruka aims to fund its growth plans through the share issuance, from upgrading existing technology and infrastructure to launching the ‘Kapruka Platform Services’ which will carry its new initiatives.
