D-Market Electronic Services & Trading Stock Price, News & Analysis

D-Market Electronic Services & Trading, doing business as Hepsiburada, is an e-commerce and technology company in Türkiye that focuses on electronic shopping within the retail trade sector. The company is listed on NASDAQ under the ticker HEPS and describes itself as an e-commerce technology platform operating through a hybrid model that combines first-party direct sales and a third-party marketplace.

Hepsiburada operates a single reportable segment of e-commerce operations. According to its disclosures, the group derives revenue from the sale of goods in a direct (1P) model, marketplace revenues in a third-party (3P) model, delivery service revenue, and other revenue. In the 1P direct sales model, the company acts as principal and recognizes revenue on a gross basis at the time of delivery of goods to customers. In the 3P marketplace model, revenues are recorded on a net basis and mainly consist of marketplace commissions, transaction fees and other contractual charges to merchants.

Hepsiburada describes its platform as a broad ecosystem of capabilities for merchants and consumers. These capabilities include last-mile delivery, fulfilment services, advertising solutions, cross-border sales, payment services and affordability solutions. The company reports working with approximately 100 thousand merchants through its marketplace model.

Business Model and Platform Ecosystem

The company’s hybrid model combines first-party direct sales with a third-party marketplace. This structure allows Hepsiburada to generate revenue from multiple streams that it explicitly identifies: sales of goods, marketplace revenue, delivery service revenue and other revenue. The company also reports non-IFRS metrics such as gross merchandise value (GMV), gross contribution, EBITDA and free cash flow in its financial communications, while emphasizing that its primary financial statements are prepared under IFRS and adjusted for hyperinflation in accordance with IAS 29.

Hepsiburada highlights a broad ecosystem for merchants and consumers built around its e-commerce platform. It states that it offers last-mile delivery and fulfilment services, advertising solutions, cross-border sales, and payment and affordability solutions. These services are intended to support both on-platform and, in some cases, off-platform activity, such as delivery services for external customers and payment solutions extended to other retailers.

Hepsipay Integrated Fintech Platform

Hepsiburada operates an integrated fintech platform called Hepsipay. According to company disclosures, Hepsipay provides secure payment solutions, including digital wallets, general-purpose loans, buy now pay later (BNPL) and one-click checkout. The company states that these services are designed to enhance shopping convenience for consumers across online and offline channels while supporting higher sales conversion for merchants. Hepsiburada also notes that it is in the early stages of building its lending capabilities and managing related credit risk, and that funds raised through bond issuances at its indirect subsidiary Hepsifinans are intended to grow its consumer finance business.

Logistics and Delivery Services

Hepsiburada identifies HepsiJet as a key logistics component of its ecosystem. It reports that HepsiJet provides last-mile delivery services, including flexible delivery options and value-added services such as return from doorstep for purchases on the platform. The company also highlights an oversized package delivery service, referred to as HepsiJet XL, which handles a significant share of oversized parcels ordered through the platform. Hepsiburada states that HepsiJet serves both merchants on its platform and external customers, and that the share of external customer volume in HepsiJet’s operations has increased over time.

Digitalization and Merchant Support

Hepsiburada describes its vision as leading the digitalization of commerce in Türkiye and positions itself as a companion in consumers’ daily lives. It states that since its founding in 2000, it has aimed to leverage digital capabilities to empower women in the Turkish economy. In 2017, the company launched the Technology Empowerment for Women Entrepreneurs (TEWE) program. According to its own reporting, this program has supported tens of thousands of women entrepreneurs and hundreds of women’s cooperatives across Türkiye in reaching customers through the Hepsiburada platform.

The company also refers to a refreshed ESG strategy under the commitment of being “Hepsiburada, Always By Your Side,” structured around three pillars: “Standing By the Planet,” “Standing By the Ecosystem” and “Standing By Trust.” It publishes sustainability reports that include, among other topics, assessments of climate-related risks and opportunities.

Financial Reporting and Hyperinflation

Hepsiburada prepares its consolidated financial statements in accordance with IFRS and, as a Turkish company whose functional currency is that of a hyperinflationary economy, applies IAS 29 Financial Reporting in Hyperinflationary Economies. The company explains that under IAS 29, financial statements are presented in terms of the measuring unit current as of the reporting date, using general price indices published by the Turkish Statistical Institute. Non-monetary items are restated from the date of acquisition to the end of the reporting period, comparative periods are restated to the current measuring unit, and gains or losses on the net monetary position are recognized in the statement of comprehensive income or loss.

In addition to IFRS measures, Hepsiburada reports non-IFRS measures such as IAS 29-unadjusted GMV, IAS 29-unadjusted EBITDA, gross contribution, gross contribution margin, EBITDA as a percentage of GMV and free cash flow. The company provides definitions, discusses limitations of these non-IFRS measures and presents reconciliations to the most directly comparable IFRS measures in its press releases and filings.

Corporate Governance and Shareholder Meetings

As a foreign private issuer, D-Market Electronic Services & Trading files reports on Form 20-F and Form 6-K with the U.S. Securities and Exchange Commission. The company uses Form 6-K to furnish press releases, voting results of general assembly meetings, explanatory notes on agendas, proxy cards, annual board reports and independent auditor reports. It holds Ordinary and Extraordinary General Assembly meetings in accordance with the Turkish Commercial Code and related regulations, where shareholders vote on items such as approval of financial statements, release of board members, profit distribution decisions, board remuneration, appointment of independent auditors, inflation accounting procedures and donation limits.

Hepsiburada has also disclosed share capital increases, including proposed or approved increases in nominal share capital and related share premiums, and decisions regarding pre-emptive rights of certain holders. These matters are presented to shareholders at general assembly meetings and documented in company press releases and Form 6-K filings.

Kaspi.kz Transaction and Ownership

In its financial communications, Hepsiburada reports that Joint Stock Company Kaspi.kz acquired a controlling stake in the company from its founder and members of the Doğan Family. The company refers to this as a change of control and characterizes Kaspi.kz as a digital ecosystem in Kazakhstan with capabilities across marketplace, payments and fintech. Hepsiburada presents this transaction as a milestone in its corporate history and associates it with potential value creation opportunities.

ESG and Social Initiatives

Beyond the TEWE program, Hepsiburada reports a range of social and environmental initiatives. These include support programs for regions affected by earthquakes, sponsorships linked to national sports teams with associated charitable components, and projects aimed at children in affected provinces. The company’s sustainability reporting and ESG communications group these initiatives under its broader ESG strategy and emphasize ongoing support in social, commercial and economic areas.

Key Operating Metrics

In its press releases on quarterly and annual results, Hepsiburada discloses operating metrics such as GMV, marketplace GMV, share of marketplace GMV, number of orders, active customers, order frequency, active merchant base, revenue by category (sale of goods, marketplace revenue, delivery service revenue and other), gross contribution, EBITDA, net income or loss, net cash from operating activities and free cash flow. The company also distinguishes between metrics that include digital products and those that exclude digital products and certain services, and it explains changes in definitions where relevant.

Summary

Overall, D-Market Electronic Services & Trading (Hepsiburada) presents itself as a Turkish e-commerce technology platform that combines first-party and third-party models, supports a large merchant base, operates integrated logistics and fintech services, and emphasizes digitalization of commerce and social impact initiatives. Its public disclosures provide detailed information on its revenue composition, operating metrics, hyperinflation-adjusted financial reporting and corporate governance practices.