Kapruka abandons plans to set up used goods market place

Kapurka Holdings PLC yesterday said it has scrapped plans to set up a used goods market place, as the project has become non-viable and unattractive in the current market conditions prevailing in Sri Lanka.   
Kapruka in a stock market filing said the newly imposed import restrictions have lowered the availability of goods in the market significantly and the trading of second-hand goods has moved into social media platforms such as ‘Facebook groups’. Kapuraka had earmarked an investment of Rs.50 million for this project, which was named soldout.lk, from its IPO proceeds. The company said the proposed investment would be redirected towards launching a marketplace platform for personal cargo collection and delivery from the Sri Lankan diaspora. 

Kapruka said the funds would be utilised for marketing and partner network development in the high diaspora markets such as Australia, the Middle East, North America and Europe.  “This project will generate revenue in 100 percent foreign currency,” the company said. “For the said project, the investment of the IPO proceeds is expected to commence in 3Q of 2022 and the development is expected to be completed by 3Q of 2023,” it added. Kapruka said prior to the utilisation of funds for the new project, the shareholders’ approval would be obtained.