Sri Lankan e-commerce business Kapruka targeting next growth phase via Rs. 500 million IPO
One of Sri Lanka’s pioneer e-commerce enterprises, Kapruka, is reportedly looking at targeting the next growth phase by listing on the Colombo Stock Exchange (CSE) through a Rs. 500 million Initial Public Offering (IPO).According to reports, the funds raised through the IPO is to be utilised to upgrade its existing technology and infrastructure and to expand its cross-border export activities.
Kapruka is also looking at generating new revenue streams by introducing several new e-commerce products, including a marketplace for premium brands, a used goods marketplace and a wholesale marketplace. The new products are expected to contribute to incremental revenue from around FY2023/24 onwards.
Kapruka was founded in 2003 and is currently identified as a largest locally-owned e-commerce player in Sri Lanka, and via the IPO, joins the select group of progressive companies going public to harness new funds for growth, improve governance as well as widen the investment opportunities at the Colombo Stock Exchange (CSE). Acuity Partners Ltd. is the financial advisor and manager to the IPO.
Sri Lanka’s private sector has recorded profits despite facing the impact of the global Covid 19 pandemic indicating the strength, growth and business potential of the country’s private sector. Many economic sectors in the country and the private sector have shown a growth momentum amidst the pandemic. With the country on the path to recovery showing signs of economic recovery, supported by an aggressive development programme and a path to position Sri Lanka as an emerging business hub in the South Asian region, the country’s private sector is focused on harnessing its business potential through new ventures and expansion programmes. Given Sri Lanka’s growing business potential, foreign businesses/investors could explore opportunities in the country while also looking at the possibility of forming partnerships or joint ventures with local businesses.
|Article Code :||VBS/AT/16112021/Z_3|