Hepsiburada IPO: Founder's Vision for Turkey's First Nasdaq Listing

Hepsiburada's Nasdaq Debut and Future Expansion

Hepsiburada, widely regarded as Turkey’s leading online marketplace – often likened to Amazon within the country – commenced trading on the Nasdaq exchange today. Current projections suggest a valuation exceeding $3.9 billion, particularly with shares initially priced at $14 each, an increase from the previously anticipated $12.

However, founder and chairwoman Hanzade Doğan Boyner views this IPO not as a culmination, but rather as a substantial funding round. This will facilitate the execution of her ambitious strategies to further penetrate Turkey’s rapidly evolving market and extend operations into Central and Eastern Europe.

A Family Legacy and Continued Control

Doğan Boyner, a member of the prominent Doğan family in Turkey, maintains significant control over the company, holding three-quarters of the voting power as detailed in the SEC filing.

Pandemic-Driven Growth and Market Position

Hepsiburada’s IPO follows a period of significant revenue growth, more than doubling during the pandemic as Turkey’s population increasingly transitioned to online shopping.

Notably, Hepsiburada, meaning “everything is here” in Turkish, marks a historic moment as the first Turkish company to list on the NASDAQ.

A Comprehensive E-commerce Ecosystem

The company boasts an extensive logistics network throughout Turkey, enabling deliveries within two hours. It offers approximately 43 million products through a superapp-like platform, providing services ranging from groceries and flights to payment solutions via its “Alipay-like” service, Hepsipay.

Recognizing Turkish consumer preferences, Hepsiburada incorporates installment payment options directly into its platform. Furthermore, the company provides a streamlined returns process, allowing for free returns facilitated by its highly efficient logistics infrastructure.

Sustained Growth and Investment

Having experienced roughly 50% year-over-year growth for the past five years, Hepsiburada doubled in size last year, capitalizing on the rapid expansion of e-commerce within Turkey’s 82-million-strong population.

The IPO is supported by a modest $100 million in investment over the past two decades, following a period of profitability until 2018, when Doğan Boyner initiated increased investment in the platform.

Interview Excerpts with Hanzade Doğan Boyner

Q: What factors led to this pivotal moment – the decision to pursue an IPO?

Doğan Boyner: For nearly two decades, we’ve been developing our e-commerce platform, consistently integrating new features and services. Today, we operate a fully integrated ecosystem encompassing last-mile delivery, payment processing, and grocery services. Hepsiburada is a superapp designed to simplify our customers’ lives, offering everything from groceries and toys to flight bookings. We are listing now because the Turkish e-commerce market is currently at 10% penetration, and we anticipate this will double by 2025. This represents a crucial turning point. We are a pioneering platform maturing towards becoming a public company, and the IPO funds will accelerate our growth and vision.

Valuation and Future Funding

Q: Are you content with the $3.9 billion valuation?

Doğan Boyner: The current valuation is not my primary concern. It’s not about the starting point, but the trajectory. I am not divesting any shares, and this is fundamentally about growth funding. This is merely the beginning. The market still exhibits low penetration, and we have a promising path ahead. I aim for strong stock performance for our investors, but today’s value is immaterial to me.

Expansion Plans and Infrastructure Development

Q: You intend to utilize some of the funding to introduce new products, such as flight bookings and money transfers. What other expansion strategies are in development?

Doğan Boyner: Our focus includes strengthening our infrastructure, particularly our frictionless returns process, which provides significant peace of mind to our customers. We are also expanding Hepsi Express, currently at 4% penetration, to reshape grocery shopping habits through partnerships with national, regional, and local stores, functioning as “dark stores.” We offer flexible options, including half-hour delivery or scheduled next-day service. Express is a key area for scaling. Payment solutions are another priority; we are the sole platform with a payments license, which will soon evolve into an open wallet, enhancing our fintech capabilities post-IPO.

Strategic Alignment with Global Models

Q: Is your strategy influenced by the Alibaba/Alipay model?

Doğan Boyner: We will leverage our existing customer base and marketplace to convert them into wallet users. Superapps are relatively uncommon in Europe and the U.S., and our vision is to digitize commerce. We aim to be readily accessible to our customers, simplifying their lives.

Adapting to the Pandemic

Q: How did you adapt operations during the pandemic?

Doğan Boyner: We became a vital resource, not only for consumers but also for our merchants. We rapidly scaled operations, onboarding thousands of drivers and employees while prioritizing employee well-being through PPE and health coverage. It was an opportunity to demonstrate our values. New customers embraced our services and remained satisfied, and our merchants appreciated our platform as a revenue source during store closures.

Commitment to Gender Equality

Q: You are a strong advocate for women, both within your company and in Turkey, having created numerous programs and initiatives. What progress have you observed?

Doğan Boyner: Half of our workforce is female, although management representation at 33% should be 50%. Our women entrepreneur program has been highly impactful, providing e-commerce training, product onboarding, free shipping, and prominent listing placement. Approximately 19,000 women have benefitted from this initiative, sharing inspiring stories of growth and empowerment. However, global progress on gender equality remains slow. I will continue to advocate for change, as every contribution matters. Our program has economically empowered women, equipping them with skills, tools, and confidence to thrive on a platform like Hepsiburada.