Rocket Internet, a German startup factory provided news about their financial performance. Earlier this month, the company declared that they had lost colossal $619 million of their financial portfolio. However, they did not provide specific and in-depth details.
The startup juggernaut blamed the companies working in its Global Fashion Group (GFG) to be causing most of the trouble. They also released a statement repeating their words and stating that “impairments at GFG weighed in on consolidated results.”
Contribution and Growth
According to the Rocket Internet, negative $429 million to the overall figure was contributed by the fashion ecommerce wing, of which Zalora is a part. The gross profit was supposed to grow 31% every year though it actually grew by 26% to regulate $508 million. However, the company stated that the plan is to be profitable by the end of 2017.
The CEO of the company, Oliver Samwer said in a statement:
“The first half 2016 results have shown that Rocket internet’s key portfolio companies continue to progress on their path to profitability. We are on track to meet our profitability targets, with at least three of our key portfolio companies turning profitable until the end of 2017”
GFG has a strong cash position that can be seen in Rocket’s financial report of $364 million as per this July. They are moving with 59% growth rate per year on their net cash.
Rocket’s fashion store in Middle, Namshi contributed US $1.8 million profit with a growth rate of 50% on revenue. However, Zalora is quite far and slow in this process. According to the financial report, Rocket declared a loss of $35 million after clubbing it together with The Iconic (its equivalent in Australia).
In comparison to last year, online food delivery service Foodpanda got 72% increase in their net revenue. The company made a gross profit of $23 million this year. Therefore all is not lost German startup. On the contrary, Foodpanda registered a net loss of $31 million overall. Nonetheless, the amount is considerably less than that of last year which was $43.6 million.
About Rocket Internet
It is an internet platform that identifies and builds proven internet business models. Subsequently, it transfers them to new, under-served or untapped markets where it seeks to scale them into market leading online companies.
Article source: Techinasia / Image source: Reuters
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