Financial Reporting and Accounting - The company's consolidated financial statements are presented in Turkish Lira, reflecting a restatement pursuant to IAS 29 due to hyperinflation, with a conversion factor of 1.00 for December 31, 2024, and 1.44 for December 31, 2023[24]. - The company applies IAS 29 for financial statements due to a cumulative inflation rate exceeding 100% in Türkiye as of February 28, 2022[23]. - The company has implemented IAS 29 inflation accounting since 2022, significantly impacting gross contribution levels due to inflation adjustments[58]. - The company's financial performance is impacted by inflation rates, as it factors monthly inflation into its financial reporting under IAS 29[97]. - The company has identified material weaknesses in its internal control over financial reporting, which could impair its ability to accurately report results and meet reporting obligations[209]. - Material weaknesses in internal control over financial reporting were identified, particularly in IT general controls, which remain unremediated as of December 31, 2024[200][202]. Revenue and Profitability - In 2024, the company incurred a net loss of TRY 1,604.9 million compared to a net income of TRY 109.1 million in 2023 and a net loss of TRY 6,916.7 million in 2022, primarily due to investments in core business expansion and strategic assets[58]. - The company's net income generation in 2023 was mainly driven by monetary gains from a net monetary position, where monetary liabilities exceeded monetary assets[58]. - The company anticipates continued net losses in the near term due to a challenging macroeconomic environment affecting customer purchasing power and ongoing capital expenditures[58]. - The company may not achieve or maintain operational profitability in the near term due to various challenges[61]. - The company needs to generate and sustain increased revenue and gross contribution levels to outpace growing operating expenses and capital expenditures to achieve operational profitability[58]. Customer and Merchant Metrics - Active Customers are defined as users who have purchased at least one item within the last 12 months, including returns and cancellations[37]. - The Active Customer base as of December 31, 2024, was 12.2 million, showing no growth compared to 2022, while it increased from 11.9 million in 2023[83]. - The company reported a significant increase in the number of Active Merchants, who sold at least one item within the last 12 months[37]. - The number of Active Merchants as of December 31, 2024, was 100.2 thousand, a decrease from 101.5 thousand in 2023 and an increase from 99.7 thousand in 2022[85]. Strategic Initiatives and Growth - The company launched the Hepsiburada Premium loyalty program on July 1, 2022, replacing the previous Loyalty Club program[25]. - The Hepsipay Wallet was launched in June 2021 as part of the company's strategic asset[25]. - The company is focused on expanding its logistics operations and financial services operations as part of its growth strategy[58]. - Significant investments are required for expanding the company's platform, workforce, and fulfillment infrastructure to support growth in new products and services[63]. - The company anticipates continued growth in its market position and customer base, despite the risks associated with hyperinflation and market volatility[39]. Regulatory and Compliance Risks - The company is subject to various legal and regulatory risks that could materially affect its business operations and financial condition[54]. - The company faces uncertainties regarding the growth and profitability of the e-commerce industry in its region, which could adversely affect its business[143]. - The company anticipates significant operational and financial resources will be required to comply with existing and new regulations, which may adversely impact its business and financial condition[176]. - The company is currently undergoing tax audits for the financial year 2022, which may result in additional tax liabilities[150]. - The introduction of a withholding tax of 1% on merchants selling through the company's platform will take effect from January 1, 2025, increasing compliance risks[153]. Competition and Market Environment - The company operates in competitive markets and may struggle to compete effectively in the future[51]. - The competitive landscape is intensifying, with challenges from both online and offline retailers, which may hinder the company's growth and market position[76]. - The company’s revenue growth may slow down or decline due to various factors, including competition and changes in consumer behavior[96]. - Inflation trends and changes in monetary policy in Turkey are expected to adversely affect consumer demand and order growth, potentially leading to negative real GMV growth[60]. Cybersecurity and Data Protection - The company experienced a cybersecurity incident in February 2024, affecting approximately 673 merchant accounts, which is less than 0.7% of Active Merchants as of December 31, 2023[104]. - Customer data was downloaded from merchant accounts for approximately 7,200 customers, representing about 0.06% of Active Customers as of December 31, 2023[104]. - The Turkish Personal Data Protection Authority imposed an administrative fine of TRY 3,453,775 due to the company's failure to prevent data breaches[105]. - The company has implemented measures to enhance security protocols following the cybersecurity incident, including suspending and resetting passwords for compromised accounts[104]. Financial Services and Payment Solutions - Hepsipay processed over 90% of all card payments in December 2024, highlighting its dominance as a payment service provider[115]. - The company launched a "Buy-Now-Pay-Later" solution and expanded its consumer finance offering in early 2024, which may expose it to credit risk from borrowers[116]. - Hepsipay faces increasing competition from established companies and fintech firms, impacting its market penetration and profitability[117]. - Hepsipay's creditworthiness assessment may fail to accurately represent borrowers' financial conditions, increasing the risk of loan impairments[118]. Legal and Litigation Matters - Hepsiburada paid $13.9 million to resolve class action lawsuits related to its ADSs, with TurkCommerce B.V. contributing $3,975,000 towards the settlement[190]. - The Turkish Capital Markets Board imposed a "board registration fee" exceeding TRY 60.1 million on Hepsiburada, which was contested in court but ultimately upheld[191]. - The company has incurred significant management time and costs in addressing compliance with Sarbanes-Oxley Act requirements, impacting operational efficiency[204]. - Ongoing litigation may increase as the company expands its business, potentially leading to higher exposure to claims and lawsuits[189]. Economic and Political Risks - Political instability in Türkiye has led to a depreciation of the Turkish Lira, which may adversely impact the company's financial condition and results of operations[214]. - The company derives substantially all of its revenue from operations in Türkiye, making it significantly affected by the economic activity and political stability in the region[213]. - Political protests and boycotts in Türkiye may directly and indirectly affect the company's business operations and revenue[214]. - The company faces risks associated with doing business in an emerging market, which could adversely affect capital flows to Türkiye and its stock price[213].

Core Viewpoint - Hepsiburada, a leading Turkish e-commerce platform, has filed its annual report for the fiscal year ended December 31, 2024, with the SEC, highlighting its ongoing commitment to transparency and investor relations [1]. Company Overview - Hepsiburada operates as a hybrid e-commerce platform combining first-party direct sales and a third-party marketplace, featuring approximately 100,000 merchants [3]. - The company aims to lead the digitalization of commerce in Türkiye, providing a wide range of services including last-mile delivery, fulfillment services, advertising solutions, cross-border sales, payment services, and affordability solutions [4]. Financial Reporting - The annual report includes audited consolidated financial statements and is available for shareholders and ADS holders upon request [2]. Social Impact - Since its inception in 2000, Hepsiburada has focused on empowering women in the Turkish economy, notably through its 'Technology Empowerment for Women Entrepreneurs' program, which has supported around 61,000 female entrepreneurs [5].

Core Insights - Hepsiburada, a leading Turkish e-commerce platform, will report its financial results for Q4 and the full year ending December 31, 2024, on April 30, 2025 [1] - The company will host a conference call and live webcast to discuss these results, scheduled for 16:00 Istanbul time [2] - Hepsiburada operates a hybrid model combining first-party direct sales and a third-party marketplace with around 100,000 merchants [4] Company Overview - Hepsiburada aims to lead the digitalization of commerce in Türkiye, providing a wide range of services including last-mile delivery, fulfillment, advertising solutions, cross-border sales, and payment services [5] - The integrated fintech platform, Hepsipay, offers secure payment solutions such as digital wallets, general-purpose loans, BNPL, and one-click checkout, enhancing consumer convenience and merchant sales [5] - Since its inception in 2000, Hepsiburada has focused on empowering women in the Turkish economy, supporting nearly 57,500 female entrepreneurs through its 'Technology Empowerment for Women Entrepreneurs' program [6]

Core Viewpoint - Hepsiburada, a leading Turkish e-commerce platform, has successfully completed its third bond issuance through its subsidiary Hepsi Finansman A.Ş., raising TRY 100 million to support the growth of its consumer finance business [1][2]. Group 1: Bond Issuance Details - Hepsifinans's third bond issuance was closed on March 4, 2025, with a total principal amount of TRY 100 million and a maturity of six months [2]. - The bonds will accrue interest at a rate of 43.00% per annum, with both principal and coupon to be repaid at maturity [2]. - This issuance is part of a larger plan approved by the Capital Markets Board, allowing for a total bond issuance of up to TRY 1,050 million within one year [2]. Group 2: Company Overview - Hepsiburada operates as a hybrid e-commerce platform combining first-party direct sales and a third-party marketplace, featuring approximately 100,000 merchants [4]. - The platform offers a wide range of services including last-mile delivery, fulfilment services, advertising solutions, cross-border sales, payment services, and affordability solutions [5]. - Hepsiburada's fintech platform, Hepsipay, enhances shopping convenience with secure payment solutions, digital wallets, general-purpose loans, and buy now pay later options [5]. Group 3: Social Impact - Since its founding in 2000, Hepsiburada has focused on empowering women in the Turkish economy, launching a program in 2017 that has supported nearly 57,500 female entrepreneurs [6].

Core Insights - Hepsiburada has concluded its "Trade and Technology Empowerment for the Earthquake Region" program, which ran from March 6, 2023, to March 11, 2025, aimed at supporting merchants in the earthquake-affected areas of Turkey [1] Group 1: Program Outcomes - The program resulted in approximately 10,400 active merchants in the earthquake region, with over 6,500 new businesses utilizing Hepsiburada to sell products online [5] - Active sellers in the earthquake region completed 9.1 million orders, selling a total of 13.5 million products and generating a trade volume exceeding TRY 9.6 billion [5] - Over 4,100 women entrepreneurs and women's cooperatives in the region contributed to a trade volume of approximately TRY 840 million [5] - Approximately 5,000 SMEs and tradespeople received training at E-Commerce Specialization Centers located in Adana, Hatay, and Kahramanmaraş [5] Group 2: Company Overview - Hepsiburada operates as a leading e-commerce technology platform in Turkey, utilizing a hybrid model that combines first-party direct sales and a third-party marketplace with around 100,000 merchants [6] - The company aims to lead the digitalization of commerce, providing a comprehensive ecosystem for merchants and consumers, including last-mile delivery, fulfillment services, advertising solutions, cross-border sales, and payment services [7] - Hepsipay, the integrated fintech platform of Hepsiburada, offers secure payment solutions such as digital wallets, general-purpose loans, buy now pay later (BNPL), and one-click checkout, enhancing shopping convenience and driving sales conversions [7] - Since its establishment in 2000, Hepsiburada has focused on empowering women in the Turkish economy, having supported nearly 57,500 female entrepreneurs through its 'Technology Empowerment for Women Entrepreneurs' program launched in 2017 [8]

Core Insights - Hepsiburada has concluded its "Trade and Technology Empowerment for the Earthquake Region" program, which ran from March 6, 2023, to March 11, 2025, aimed at supporting merchants in the earthquake-affected areas of Turkey [1] Group 1: Program Outcomes - The program resulted in approximately 10,400 active merchants in the earthquake region, with over 6,500 new businesses utilizing Hepsiburada's platform for online sales [5] - Active sellers in the earthquake region achieved a total sales volume of 13.5 million products through 9.1 million orders, generating a trade volume exceeding TRY 9.6 billion [5] - Over 4,100 women entrepreneurs and women's cooperatives in the region contributed to a trade volume of approximately TRY 840 million [5] - Approximately 5,000 SMEs and tradespeople received training at E-Commerce Specialization Centers located in Adana, Hatay, and Kahramanmaraş [5] Group 2: Company Overview - Hepsiburada operates as a leading e-commerce technology platform in Turkey, utilizing a hybrid model that combines first-party direct sales and a third-party marketplace with around 100,000 merchants [6] - The company aims to lead the digitalization of commerce, providing a comprehensive ecosystem for merchants and consumers, including last-mile delivery, fulfillment services, advertising solutions, cross-border sales, payment services, and affordability solutions [7] - Hepsipay, the integrated fintech platform of Hepsiburada, offers secure payment solutions such as digital wallets, general-purpose loans, buy now pay later (BNPL), and one-click checkout, enhancing shopping convenience and driving higher sales conversions [7] - Since its inception in 2000, Hepsiburada has focused on empowering women in the Turkish economy, having supported nearly 57,500 female entrepreneurs through its 'Technology Empowerment for Women Entrepreneurs' program launched in 2017 [8]

Core Viewpoint - Hepsiburada, a leading Turkish e-commerce platform, has announced the issuance of TRY 500 million in asset-backed securities to support its Buy Now Pay Later (BNPL) business and improve working capital management [1][2]. Group 1: Financial Issuance Details - The fourth issuance of asset-backed securities amounts to TRY 500 million, part of a TRY 2 billion limit set by the Capital Markets Board for Pasha Yatırım Bank Hepsiburada Varlık Finansmanı Fonu, settled on March 12, 2025 [2]. - This issuance consists of five tranches with an average maturity of 70 days and an annual average interest rate of 42.75% [2]. - Previous issuances include TRY 150 million on June 5, 2024, TRY 350 million on September 27, 2024, and TRY 450 million on December 4, 2024 [3]. Group 2: Company Overview - Hepsiburada operates as a hybrid e-commerce platform combining first-party direct sales and a third-party marketplace with approximately 100,000 merchants [5]. - The platform offers a wide range of services including last-mile delivery, fulfillment services, advertising solutions, cross-border sales, payment services, and affordability solutions [6]. - Hepsipay, the integrated fintech platform of Hepsiburada, provides secure payment solutions such as digital wallets, general-purpose loans, BNPL, and one-click checkout [7]. Group 3: Social Impact - Since its founding in 2000, Hepsiburada has focused on empowering women in the Turkish economy, launching the 'Technology Empowerment for Women Entrepreneurs' program in 2017, which has supported nearly 57,500 female entrepreneurs [8].

Group 1 - The core thesis regarding Hepsiburada (NASDAQ: HEPS) is that profits are becoming visible as the leading Turkish e-commerce platform experiences growth in revenues, GMV (Gross Merchandise Volume), and membership [1] - The stock of Hepsiburada has appreciated over 140% since the last analysis, indicating strong market performance [1] Group 2 - The author expresses a long position in Hepsiburada shares, indicating confidence in the company's future performance [2] - The article reflects a personal investment philosophy focused on finding value in emerging markets and emphasizes an owner-mindset approach to investing [1]

Core Viewpoint - Hepsiburada, a leading Turkish e-commerce platform, held an Extraordinary General Assembly Meeting (EGM) on January 31, 2025, where significant changes to its Board of Directors and corporate governance structure were approved [1][2]. EGM Voting Results - The EGM was conducted in compliance with the Turkish Commercial Code and the company's Articles of Association, with a quorum present [2]. Changes to the Composition of the Committees of the Board - The election of new Board members was approved, reducing the total number of Board members from eleven to nine, with Mikheil Lomtadze appointed as Chairman and Yuri Didenko as Vice Chairman [4]. - Amendments to the Articles of Association were made, including the removal of privileges for Class A shares and various articles related to share classes and voting rights [4]. Appointment of a General Counsel and Corporate Secretary - Güneş Akman Özcan was appointed as General Counsel and Corporate Secretary, effective January 1, 2025, after serving in an acting capacity since January 1, 2024 [6]. Board Committees Composition - The newly appointed Board established the following Committees: Audit Committee, Early Detection of Risk Committee, and Corporate Governance Committee, with specific members assigned to each [10].

Core Viewpoint - D-MARKET Electronic Services & Trading, operating as Hepsiburada, has completed a significant transaction where Joint Stock Company Kaspi.kz has acquired 65.41% of Hepsiburada's shares for approximately $1,127 million, marking a change in controlling ownership [1][2]. Group 1: Transaction Details - The Buyer purchased all outstanding Class A and Class B shares from the Sellers, representing 65.41% of Hepsiburada's total shares [2]. - The total consideration for the shares was approximately $1,127 million, with $600 million paid in cash on the Closing Date and $526.9 million as Deferred Cash Consideration to be paid within six months [2]. - As collateral for the Deferred Cash Consideration, the Buyer pledged 65,199,658 Class B shares of Hepsiburada [2]. Group 2: Company Overview - Hepsiburada is a leading e-commerce technology platform in Türkiye, utilizing a hybrid model that includes both first-party direct sales and a third-party marketplace with around 100,000 merchants [3]. - The platform aims to lead the digitalization of commerce, providing a wide range of services such as last-mile delivery, fulfillment, advertising solutions, cross-border sales, and payment services [4]. - Hepsiburada's fintech platform, Hepsipay, offers secure payment solutions, enhancing shopping convenience and driving higher sales conversions for merchants [4]. Group 3: Social Impact - Since its inception in 2000, Hepsiburada has focused on empowering women in the Turkish economy, launching the 'Technology Empowerment for Women Entrepreneurs' program in 2017, which has supported nearly 57,500 female entrepreneurs [5].