Kurly, the trailblazer of dawn delivery services in South Korea, has successfully achieved its first annual profit, igniting speculation about a potential initial public offering (IPO). The company’s decision to establish its U.S. subsidiary in Delaware is seen as a strategic move towards a possible listing on the American stock market.
Kurly’s business report reveals that its U.S. entity, Kurly Global, is headquartered in Dover, Delaware’s capital. The parent company retains full ownership, and the subsidiary’s primary focus is e-commerce retail, with an emphasis on facilitating cross-border transactions.
Delaware’s business-friendly environment, characterized by low corporate taxes, flexible shareholder structures, and a high degree of contractual freedom, makes it an ideal launchpad for companies eyeing the U.S. stock market. It’s a popular choice for startups looking to set up holding companies prior to listing.
The U.S. stock market’s allowance for dual-class voting structures could prove advantageous for Kurly’s Chief Executive Officer (CEO) Sophie Kim. Despite her relatively low share ownership, this system could help safeguard her management control, enhancing the appeal of a U.S. listing.
Kurly’s IPO journey began in 2021 when it successfully cleared the preliminary review for listing on the Korea Exchange. However, persistent operating losses prompted the company to postpone its public debut to 2023.
Currently, Kurly isn’t in a rush to go public. Unlike its previous IPO attempt when substantial external investment was necessary, the company now generates sufficient revenue to fund its growth initiatives independently.
In the last fiscal year, Kurly posted record-breaking sales of 2.3671 trillion KRW (approximately 1.56 billion USD) and reported an operating profit of 13.1 billion KRW (about 8.68 million USD), marking its first profitable year since its inception a decade ago. The company’s financial health is further evidenced by a significant reduction in advertising expenditure, which plummeted from 54.2 billion KRW (around 35.9 million USD) in 2022 to 8.85 billion KRW (about 5.86 million USD) in 2024, demonstrating its ability to sustain growth without relying on external funding.
Within the e-commerce sector, Kurly’s competitor Coupang has already made its debut on the New York Stock Exchange. Meanwhile, Musinsa, a prominent fashion platform, is exploring the possibility of a dual listing on both the Korean market and Nasdaq.
A spokesperson for Kurly stated that its current revenue stream is robust enough to support new investments, eliminating any urgency for an IPO. However, it hasn’t abandoned the idea of going public. It’s simply approaching it with a measured, long-term perspective.