Kurly Achieves Record Revenue and Reduces Losses in Landmark Year 2023
Korean company Kurly has reported its highest annual revenue to date, reaching KRW 2.077 trillion last year. The company also saw its annual losses shrink by approximately 40% compared to the previous year, down to KRW 143.6 billion, marking the first time in its history that annual losses have decreased.
Kurly’s business report reveals that its revenue for the fourth quarter of 2023, on a consolidated basis, rose to KRW 531.1 billion, a 5% increase year-over-year. The operating loss for the same period was halved to KRW 25.1 billion. A notable milestone was achieved in December, as Kurly recorded positive EBITDA for the first time since its founding, with a significant increase from the previous December. This positive trend has persisted for three months, continuing through the end of February this year.
This achievement is attributed to significant improvements in Kurly’s cost structure, including marketing, logistics, and fixed expenses, alongside establishing a sustainable revenue model. The company cites enhanced productivity from its newly opened logistics centers in Changwon and Pyeongtaek, which helped stabilize logistics operations, and the strategic withdrawal from its less efficient Songpa logistics center as key factors.
Kurly’s expansion into new business areas such as Beauty Kurly, its commission-based third-party (3P) marketplace, and the Kurly Members membership program, has also played a crucial role in improving performance. Beauty Kurly, in particular, has become a significant part of Kurly’s overall Gross Merchandise Volume (GMV), accounting for 10% and offering higher-priced items that significantly boost profitability.
The 3P business has doubled in growth compared to the previous year, and Kurly Members, launched in August of the last year, has seen its subscriber base triple within six months, with an impressive 85% retention rate. Consequently, Kurly’s GMV for 2023 reached approximately KRW 2.8 trillion, marking a 6.1% increase from the previous year.
Kurly’s CFO, Kim Jong-hoon, commented, “Even amidst last year’s downturn in the retail sector, we managed to achieve both sales growth and enhanced profitability through our expansion into new businesses and through structural cost improvements. With the completion of major investments, including the establishment of new logistics centers, we are now poised to reinforce our profitability trend and focus on further growth this year.”
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