Zalora Thailand and Vietnam to be offloaded
In this article (4)
Rocket Internet is selling its Zalora Thailand and Vietnam eCommerce fashion sites.
This follows the Alibaba Group investing in Rocket Internet’s Lazada, valued at US$1.5 billion. Zalora, which raised more than $250 million, was once on an equal footing with Lazada, according toTechCrunch.
Southeast Asia did not have service from Amazon or eBay when Rocket started Lazada and Zalora in 2012, but the two outlets have posted heavy losses and experienced slow market growth.
Zalora, part of the Global Fashion Group (GFG), covers 11 countries across Asia Pacific, including Australia, Indonesia and Taiwan. While its revenue rose 78 per cent to US$234 million last year, its net loss blew out 36 per cent to $105 million.
Meanwhile, Rocket has announced a new strategy that takes it back to its roots, launching early-stage startups. It sold India-based Fab Furnish this month and Foodpanda Vietnam last year, and is said to be seeking buyers for Foodpanda India and eCommerce site Jabong.
Questions & Answers
Q.What prompted Rocket Internet to sell Zalora Thailand and Vietnam?
What prompted Rocket Internet to sell Zalora Thailand and Vietnam?
The sale follows the Alibaba Group's investment in Rocket Internet's Lazada, valuing it at US$1.5 billion. Rocket Internet has also announced a new strategy focusing on launching early-stage startups again.
Q.How has Zalora been performing financially across its operations?
How has Zalora been performing financially across its operations?
Last year, Zalora's revenue increased by 78 per cent to US$234 million. However, its net loss grew significantly, blowing out by 36 per cent to reach $105 million during the same period.
Q.Which other businesses has Rocket Internet recently sold or is looking to sell?
Which other businesses has Rocket Internet recently sold or is looking to sell?
Rocket Internet sold India-based Fab Furnish this month and Foodpanda Vietnam last year. It is also reportedly seeking buyers for Foodpanda India and the eCommerce site Jabong.
Reader pulse
Rocket selling Zalora shows:
22,481 votes so far