SoftBank’s Vision Fund has sold $1 billion with of shares in South Korean eCommerce company Coupang, Reuters reported Monday (March 14).
The fund sold 50 million shares in Coupang at $20.87 each, leaving it with 461.2 million shares remaining. Reuters said the sale follows a $1.69 billion selloff in September of last year. SoftBank first invested in Coupang in 2015.
“They’re going to sell the winners,” Redex Research analyst Kirk Boodry told Reuters. “Selling at a loss isn’t going to be very well accepted in this market.”
Learn more: Coupang Grows Twice as Fast as Korean eCommerce Segment
Coupang’s shares have been trading below their list price amid investor skepticism about some of the struggling startups in the SoftBank portfolio. Reuters notes that SoftBank has also seen losses due to a downturn in valuation at Chinese tech companies.
Last year was a momentous one for Coupang, which went public with a $4.6 billion IPO and reported revenue growth that was twice as fast as the South Korean eCommerce sector.
The company also launched a small-business assistance program that will provide roughly $340 million to small business owners and livestock farmers for online growth.
But the company was also hit with allegations that it had tampered with search algorithms to prioritize its products over its rivals.
Read more: Korea Fair Trade Commission Probes Coupang’s Algorithm Use
The Korea Fair Trade Commission (KFTC) began an investigation of the company following public scrutiny over a number of issues: the company’s labor practices, numerous workers’ deaths at its warehouses and consumer boycotts prompted by a fire that killed one person.
The KFTC also levied a $23 million fine against Coupang for the company’s Naver internet portal, which was found to have tampered with search algorithms for video and shopping platforms to put its own service ahead of others.
Civic groups have also criticized the company for allegedly bullying vendors to reduce the prices of their products and punishing those who wouldn’t comply.
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