Rocket Internet to offload Zalora Thailand and Vietnam
Germany’s Rocket Internet is selling its Zalora Thailand and Vietnam fashion platforms on the back of heavy losses and slow market growth over the past year, according to media reports.
According to TechCrunch, Rocket Internet has been shopping Zalora to investors and potential acquirers for some time. But with no interest in its sale as a whole unit, Rocket is breaking Zalora into country chunks that are for sale in specific markets.
The announcement follows the news that Alibaba Group has invested in Rocket Internet’s other struggling platform Lazada, valued at US$1.5 billion.
Zalora, which raised more than $250 million, was once on equal terms in the market with Lazada. But both sites have suffered losses and witnessed lacklustre market growth since their official launch into Thailand and Vietnam by Rocket Internet in 2012.
Four years ago, Southeast Asia - a region with over 550 million people – had no access to e-commerce sites Amazon or eBay and saw Zalora as a major shopping platform in the region.
Part of the Global Fashion Group (GFG) Zalora covers 11 countries across Asia Pacific namely Australia, Indonesia and Taiwan.
Zalora revenues lifted 78% to US$234m last year. Despite eyeing a profit in 2015, it posted a net loss of 36% or $105m.
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