Kapruka sets up UK subsidiary to expand cross-border deals

Kapruka Holdings PLC has incorporated a fully-owned subsidiary named Kapruka Global UK to expand its cross-border operations and have a strategic presence in the United Kingdom.

The incorporation of the subsidiary aligns with Kapruka Holdings PLC’s long-term strategy to deliver value-driven solutions to its customers and strengthen its market presence.

In the third quarter of FY25, Kapruka Holdings group registered revenue of Rs. 427.54 million over the past quarter and the Group Loss before Tax amounted to Rs. 25 million for the recent quarter.

The decline in Group Profit Before Tax (PBT) compared to last year’s figures was primarily due to rebranding related marketing expenses—an investment that is expected to yield long-term benefits. “Encouragingly, we are already seeing positive momentum, with a significant increase in local sales and higher transaction volumes as customers adapt to our new brand positioning,” Kapruka Chairman and CEO Dulith Herath said in a statement accompanying interim results.

As a testament to its financial strength, the Group’s total assets were valued at Rs. 1.5 billion reflecting continued stability and resilience, according to Herath.

He said as a result of rebranding and strategic repositioning as a premium online retailer, local sales are gaining momentum. At the same time, the Company is witnessing strong growth in USD –denominated revenue, driven by an increasing number of expatriates choosing Kapruka to provide essential goods for their families in Sri Lanka.

The Kapruka Partner Central initiative continues to expand, with significant milestones including partnerships with top brand importers in Sri Lanka and the integration of airport duty-free shops, enabling seamless pre-ordering and pickup upon arrival.

Additionally, e-commerce export partnerships with Amazon and eBay are progressing well. Kapruka launched initiatives to expand Sri Lankan brands into new global markets, including Amazon Japan and Ozon Russia, reinforcing its position in cross-border e-commerce.

Revenue in the first nine months was down by 10% to Rs. 1.19 billion and operating loss grew by 42% to Rs. 95.5 million. Pre-tax loss was Rs. 64.2 million up by 178% from the corresponding period of last year and after tax loss grew by 108% to Rs. 75.5 million.