D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS): BCG Matrix [Dec-2025 Updated]

D-Market Elektronik Hizmetler ve Ticaret A.Ş. (HEPS) is funneling cash from mature electronics and general merchandise into high-growth stars-Hepsipay fintech, HepsiJet logistics and Premium loyalty-while selectively investing in risky question marks like grocery, Ukraine expansion and HepsiAd that could become future engines of growth; underperforming niche services and legacy integrations are being de-emphasized to simplify the platform and protect returns, making capital allocation the decisive lever for HEPS's next phase.

D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS) - BCG Matrix Analysis: Stars

Stars

Hepsipay fintech solutions drive exponential growth. Hepsipay reached a total transaction volume of 165,000,000,000 TRY by the end of 2025, representing a 110% year‑over‑year increase. The unit captures 38% of the non‑bank digital wallet market in Turkey following expansion into third‑party merchant integrations. Hepsipay contributes 14% to group revenue and sustains an EBITDA margin of 22%. Capital expenditure is budgeted at 18% of segment revenue to fund advanced AI‑driven consumer credit scoring and fraud detection. BNPL (Buy Now Pay Later) product scaling has pushed fintech services ROI to 20%.

Strategic priorities for Hepsipay include scaling merchant integrations, expanding credit products, and improving unit economics via AI risk models.

• Focus: BNPL expansion, merchant APIs, cross‑sell with marketplace.
• Investment: AI credit scoring, regulatory compliance, fraud prevention.
• KPIs to monitor: GMV growth, active wallets, take rate, default rate, CAC/LTV.

HepsiJet logistics services expand external market reach. In 2025 HepsiJet handled 88% of Hepsiburada marketplace deliveries and increased its external customer base by 50%. Operating in a delivery sector growing at 24% CAGR, HepsiJet holds a 13% share of the Turkish e‑commerce delivery market. The unit recorded a 9% EBITDA margin after deploying proprietary route optimization and high‑density sorting hubs. Investments in electric delivery vehicles and automation represented 22% of group capital expenditure. HepsiJet delivers a 15% ROI and is prioritizing geographic expansion and service diversification.

• Focus: Network density, last‑mile electrification, B2B contracts.
• Investment: Automation in hubs, telematics, predictive maintenance.
• KPIs: Delivery cost per parcel, on‑time rate, utilization, external revenue share.

Hepsiburada Premium loyalty program enhances retention. By December 2025 Premium reached 3,800,000 active members, a 42% increase year‑over‑year. Premium members drive 48% of total GMV while representing a smaller percentage of users. Subscriber retention stands at 89%, markedly reducing blended customer acquisition costs. The loyalty ecosystem yields a 14% ROI by boosting order frequency to an average of 6.5 orders per month and increasing average order value. The subscription economy segment is expanding at ~30% annually, positioning Premium as a high‑growth strategic asset.

• Focus: Tiered benefits, personalized offers, retention marketing.
• Investment: Data science for personalization, partner benefits, exclusive inventory.
• KPIs: Churn, ARPU (average revenue per user), CLTV, incremental GMV from members.

D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS) - BCG Matrix Analysis: Cash Cows

Cash Cows

The electronics and appliances category functions as a primary cash cow for HEPS, representing 38% of total annual sales and holding a stable 19% share of the Turkish online electronics retail market. The market is mature with a 7% annual growth rate. This segment delivers a consistent 7.0% EBITDA margin and a high cash conversion ratio that supports internal funding of fintech and logistics initiatives. Capital expenditure for this unit is minimal at 2% of segment revenue, allocated mainly to platform maintenance and incremental UX improvements. The segment achieves a steady 12% return on investment (ROI), producing predictable free cash flow that underpins group-level strategic investments.

The general merchandise marketplace (including home & garden) contributes 25% of group revenue and maintains a 15% market share within a consolidated sector growing at approximately 9% per year. The unit operates with a 5.5% EBITDA margin, benefits from high organic traffic that reduces customer acquisition costs, and requires limited marketing expenditure. Annual capital expenditures are constrained to 3% of segment revenue to maximize cash extraction for growth initiatives elsewhere in the company. Overall ROI for this segment is about 10% across sub-categories, delivering stable returns and margin resilience amid low-to-moderate market expansion.

Strategic characteristics and operational levers for cash extraction:

• Low incremental capex needs: focus on maintenance and platform stability rather than heavy infrastructure investment.
• High operational efficiency: inventory turnover and supplier terms optimized in electronics reduce working capital needs.
• Strong organic demand in general merchandise lowers paid acquisition costs and marketing intensity.
• Predictable margins and cash flows enable multi-year funding of fintech products (wallet, payments) and last-mile logistics expansion without significant external financing.
• Conservative margin management: promotions and pricing strategies designed to preserve EBITDA while retaining market share in mature categories.

D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS) - BCG Matrix Analysis: Question Marks

Question Marks - this chapter treats three HEPS business units that occupy low relative market share positions in high-growth markets; each requires targeted investment decisions to determine whether to divest, harvest, or scale toward a Star. The units examined are Hepsiburada Market grocery delivery, international expansion into Ukraine, and the HepsiAd advertising platform.

Hepsiburada Market grocery delivery seeks scale. The Turkish online grocery segment is growing at 52% annually with an addressable market estimated at USD 12.0 billion. Hepsiburada Market currently holds a 7% market share and represents 9% of HEPS group revenue. Despite rapid market expansion, the unit operates at a negative EBITDA margin of -4%. Management allocated USD 30.0 million capex in 2025 to expand a dark‑store network and improve cold‑chain efficiency. Competitive pressure from well‑established local incumbents compresses returns; ROI is estimated at -3% as the unit competes for customer retention and frequency.

Key strategic considerations for Hepsiburada Market include prioritizing cold‑chain capex to reduce spoilage and delivery costs, optimizing assortment to increase basket size, and targeted loyalty incentives to improve repeat purchase rates. Without incremental market share gains above current levels, the unit risks remaining a sustained loss‑making Question Mark.

• Required incremental investment to reach Star: estimated additional USD 50-80 million over 3 years for dark‑stores and last‑mile scale.
• Breakeven target: achieve 15-20% market share in urban catchments to move EBITDA to positive territory.
• KPIs to monitor: repeat purchase rate, cost per delivered order, share of refrigerated SKUs, customer acquisition cost.

International expansion into Ukraine tests viability. The Ukrainian market is projected to grow ~35% annually amid reconstruction-driven demand. HEPS's Ukrainian operations contribute <3% to group revenue and hold <2% local market share. The company earmarked 12% of total 2025 capex toward building local logistics partnerships and brand awareness. EBITDA margin sits at -12% due to high setup costs, inventory risks, and volatile localized marketing spend. ROI is -8%, indicating current cash burn and uncertain path to profitability.

• Strategic options: scale selectively in high‑growth cities, form joint ventures with local logistics providers, or limit exposure via an asset‑light model.
• Milestones to justify continued investment: positive unit economics within 24-36 months, attainment of ≥5% market share in target regions.
• Operational priorities: local inventory risk hedging, flexible workforce models, localized marketing with measurable CAC payback.

HepsiAd advertising platform targets retail media growth. The retail media sector across emerging markets is expanding ~40% annually. HepsiAd captures ~5% of digital advertising spend within the Turkish e‑commerce ecosystem and contributes 4% to HEPS group revenue. The platform requires material technical upgrades; 2025 investment in AI‑based ad targeting equaled ~10% of segment revenue to improve click‑through and conversion rates. While a potential long‑run EBITDA margin of up to 30% is achievable, current ROI is constrained at 5% due to heavy development costs and competitive pressure from global ad networks.

• Value drivers: scale of merchant spend, improved targeting lift, measurement products that demonstrate ROAS.
• Investment requirements: continued R&D in AI, engineering to integrate first‑party signals, salesforce expansion to capture retailer budgets.
• Success metrics: advertiser retention rate, average spend per advertiser, incremental GMV attributed to HepsiAd.

D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS) - BCG Matrix Analysis: Dogs

Dogs - Legacy third party physical service integrations stagnate: The integration of legacy third-party physical services (travel booking vouchers, local service coupons, in-person ticketing) has exhibited near-zero growth, recording a 2.0% year-over-year revenue growth rate in 2025. This segment contributes 0.8% to consolidated group revenue (TRY 24.0 million of TRY 3,000 million total), with an estimated market share of 0.35% in its addressable offline services market. EBITDA margin for the unit compressed to 0.2% (TRY 48k EBITDA on TRY 24.0m revenue). Capital expenditure allocated to this unit was reduced to TRY 0 in the past two fiscal years. Reported return on investment (ROI) stands at -5.0% driven by platform maintenance costs, declining transaction frequency (-8% TTM), and increasing customer acquisition cost per order (up 18% to TRY 22 per order). The company has initiated a phased decommission plan to simplify the mobile app and cut maintenance overheads, targeting full wind-down of active listings within 18 months.

Dogs - Non-core niche fashion sub-categories underperform: Specific niche fashion lines (seasonal accessories, micro-brand apparel, low-volume designer collaborations) declined in volume by 5.0% during 2025. These sub-categories account for 1.5% of total group revenue (TRY 45.0 million of TRY 3,000 million) and maintain a market share below 1.0% within specialized fashion verticals. High return rates of 35% materially impact unit economics; after reverse logistics, refurbishment and restocking costs, the segment posts a negative 2.0% EBITDA margin (loss of TRY 900k on TRY 45.0m revenue). No new capital expenditure has been assigned to these categories for the last two fiscal quarters, as funds are reallocated to fintech and higher-margin marketplaces. Inventory holding costs and write-downs pushed the specific lines to a -6.0% ROI, with aged inventory (>180 days) representing 18% of SKU value in the category.

• Operational posture: Phase out legacy third-party physical services within 12-18 months, reassign platform engineering headcount to core marketplace and fintech.
• Inventory strategy: Rationalize niche fashion SKUs by culling bottom 40% by velocity, implement clearance programs to reduce aged inventory to below 5% within two quarters.
• Cost controls: Halt further marketing and CapEx for both units, reduce warehousing footprint for niche fashion by consolidating to a single regional DC to cut holding costs by estimated 22%.
• Financial targets: Achieve positive ROI by reallocating savings to higher-margin fintech projects projected to deliver incremental EBITDA of TRY 60-80 million over 24 months.