ISTANBUL - D-MARKET Electronic Services & Trading, known as Hepsiburada (NASDAQ: HEPS), a prominent e-commerce platform in Türkiye, has completed its second asset-backed securities issuance, raising TRY 350 million. The transaction was settled on September 27, 2024, within the authorized limit of TRY 2 billion by the Capital Markets Board for Pasha Yatırım Bank Hepsiburada Varlık Finansmanı Fonu.
The recent issue, which consists of six tranches, carries an average maturity of 84 days and an annual interest rate of 51.00%. Hepsiburada, acting as the originator for its Buy Now, Pay Later (BNPL) receivables, aims to channel the funds to bolster the BNPL business segment and alleviate the pressure on working capital.
Serving over 66 million members, Hepsiburada offers access to more than 264 million stock keeping units across various product categories. The company operates a hybrid model that includes both direct sales and a third-party marketplace, featuring approximately 101 thousand merchants. The platform's comprehensive ecosystem provides services such as last-mile delivery, advertising, on-demand grocery delivery, and payment solutions through Hepsipay.
Hepsiburada's international arm, HepsiGlobal, facilitates cross-border sales for merchants in Türkiye and provides international selections to its customers. Since its inception in 2000, the company has been committed to empowering women entrepreneurs in Türkiye through its 'Technology Empowerment for Women Entrepreneurs' program, which has supported around 55 thousand female entrepreneurs to date.
The information regarding this securities issuance is based on a press release statement by Hepsiburada. The company has cautioned that the forward-looking statements in the press release involve risks and uncertainties, and actual results could differ materially from those projected. These statements are not guarantees of future performance and should not be unduly relied upon. Investors are encouraged to consult the company's filings with the SEC for a more detailed discussion of potential risks and uncertainties.
In other recent news, Turkish e-commerce platform Hepsiburada reported robust Q2 2024 results, with an impressive 33% year-on-year growth in order volume, reaching 36.7 million. The company's Gross Merchandise Volume (GMV) doubled compared to the first half of 2023, and active customers increased to 12.1 million. Hepsiburada anticipates strong Q3 results, forecasting GMV growth between 70% and 75% year-on-year, and an EBITDA margin of approximately 2.2% of GMV.
In addition to its financial performance, Hepsiburada recently reshuffled its Board of Directors' committees. The company has updated the composition of its Audit, Risk, and Corporate Governance Committees, with new assignments and additional functions to its Risk Committee, which will transition to an Early Detection of Risk Committee in 2025. The move is part of Hepsiburada's commitment to robust corporate governance and risk management practices.
These are among the recent developments at Hepsiburada, indicating the company's resilience and adaptability in a challenging economic landscape.
InvestingPro Insights
Hepsiburada's recent asset-backed securities issuance aligns with its strategic focus on financial flexibility and growth. According to InvestingPro data, the company's market capitalization stands at $729.54 million, reflecting its significant presence in the Turkish e-commerce sector.
An InvestingPro Tip highlights that Hepsiburada holds more cash than debt on its balance sheet, which could be seen as a positive indicator of financial health, especially in light of the recent securities issuance aimed at supporting its Buy Now, Pay Later segment and working capital needs.
Despite the company's expansion efforts, InvestingPro data shows that Hepsiburada's revenue growth in the last twelve months as of Q2 2024 was modest at 0.97%. However, an encouraging InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive sign for investors considering the company's future prospects.
It's worth noting that Hepsiburada's stock has shown significant volatility, with a 70.68% price return over the past year, according to InvestingPro data. This aligns with another InvestingPro Tip indicating that the stock generally trades with high price volatility, which potential investors should keep in mind.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for Hepsiburada, providing a more comprehensive view of the company's financial position and market performance.
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