In January, leading South Korean e-commerce player Coupang (NYSE: CPNG) acquired Farfetch Holdings, a British online luxury goods retailer, for $500 million. Based on Visible Alpha consensus, the inclusion of Farfetch in Coupang’s developing offerings division is expected to boost the segment’s revenue to $3.18 billion in 2024, up from $789 million before the acquisition in 2023. However, challenges in integrating Farfetch are anticipated to lead to a 26% decrease in Farfetch revenues in 2024, before growth resumes in 2025.
Despite these initial challenges, Coupang’s total revenue is expected to increase by 25% in 2024 compared to the previous year. This growth is projected to be driven by a 17% increase in the company’s primary revenue-generating product commerce segment and a 303% increase in Coupang’s developing offerings segment (including Farfetch). With an estimated average customer count of 22.4 million in 2024, Coupang’s gross merchandise value (GMV) is forecasted to rise by 22% year over year, reaching $46.5 billion.