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Investigation of D-MARKET Electronic Services & Trading d/b/a Hepsiburada

D-MARKET Electronic Services & Trading d/b/a Hepsiburada (HEPS) Misstated its Business and Financial Prospects

A class action was filed on behalf of purchasers of D-MARKET Electronic Services & Trading d/b/a Hepsiburada (Nasdaq: HEPS) American Depository Receipts (“ADRs”) issued in connection with the Company’s July 2021 initial public offering (“IPO”).  The complaint alleges violations of the Securities Act of 1933.  Hepsiburada is an online e-commerce company in Turkey where it is known as the “Amazon of Turkey.” 

According to the complaint, on July 1, 2021, Hepsiburada conducted its IPO, selling 62.251 million ADRs at $12 per ADR for more than $783 million in gross proceeds.  However, the Registration Statement filed in support of the IPO failed to disclose that Hepsiburada suffered a sharp deceleration in operational and sales growth during second quarter 2021.  Specifically, the Company attempted to fortify its competitive position by investing in electronics and high frequency categories and discounting certain categories.  As a result, Hepsiburada’s revenue and GMV declined during second quarter 2021.    

On August 26, 2021, Hepsiburada announced its 2Q21 financials results, including a just 5.2% year-over-year growth in 2Q21, over 90% below the most recent growth highlighted in the Registration Statement, reflecting “the shift in GMV mix in favor of Marketplace.”  The Company also reported EBITDA was “negative TRY 188.6 million in Q2 2021 compared to positive TRY 71.1 million in Q2 2020 … due to lower gross contribution driven primarily by investments to fortify our position in electronics, investments to penetrate in high frequency categories as well as higher customer demand for low margin products.”  On this news, the Company’s ADR price fell $3.05, or 25%, to close at $8.97 per ADR on August 26, 2021. 

At the time the complaint was filed, the stock was trading at $5.30 per ADR, a more than 55% decline from the price at which Hepsiburada sold its ADRs to investors. 


If you own shares of D-MARKET Electronic Services & Trading d/b/a Hepsiburada (HEPS), you have until December 10, 2021, to ask the court to appoint you as lead plaintiff for the class.

All representation is on a contingency fee basis.  Shareholders pay no fees or expenses.

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