Rocket Internet – 75 portfolio companies in over 50 companies, over $1bn in funds raised since May 2012 and about 20,000 employees worldwide. How much are the company builder’s top ventures bringing in so far?
The answer comes from the interim financial report of Swedish investment bank AB Kinnevik, released today. Kinnevik, a public company trading on the Nordic NASDAQ, is Rocket Internet’s principal financial backer. It holds about 24 per cent of the company and just put in €67m to keep that stake during recent fundraising that saw Rocket Internet raise $400m mostly from Len Blavatnik’s Access Industries.
According to Kinnevik’s report, 14 of Rocket Internet’s most prominent ventures together made net revenue of about SEK 12.8bn (€1.5bn or almost $2bn) in 2012. We understand all portfolio companies together are currently bringing in annualised combined revenue of $3bn. It’s unclear which are profitable and unlikely to be many of the fast-growing group.
Zalando – net sales of €372m in Q1 2013
The most established in the portfolio is Zalando, Rocket Internet’s online fashion retailer in Europe (Rocket currently holds about 38 per cent).
Zalando started operations in 2008 and today has expanded to 14 countries across Europe. It reported net revenue of over €1.1bn in 2012 – and net sales of €372m in Q1 2013 compared to €214m in Q1 2012, after adding seven new markets during 2013. Last year, it broke even for the first time in home region Germany, Austria and Switzerland. That implies it’s still making a loss overall.
Home24 versus Westwing
Online furniture retailer Home24 is quite some way off its backers’ ambitions to “take down Ikea”. In 2012, the group – active in Germany, Austria, France, the Netherlands and Brazil (as Mobly) – brought in net revenue of SEK 550m (€64.1m) in 2012, up from SEK 227 (€26.4m) in 2011. It started operations in 2009.
Westwing, Rocket Internet’s flash sales site for home and lifestyle goods, has grown more quickly since starting up in late 2011. While not yet profitable, it brought in SEK 363 (€42.3m) in 2012 and could be on track to do almost €135m in 2013.
Capital-hungry online malls
It’s mixed results for the other online fashion companies in the portfolio: Dafiti (South and Central America), Lamoda (Russia), Jabong (India), Namshi (Middle East), Zalora (Southeast Asia) and Zando (South Africa).
Dafiti and Lamoda, both founded in early 2011, brought in net revenue of SEK 796m (€92.7m or $121.4m) and SEK 445m (€51.8m or $67.9m) respectively in 2012. Neither is likely to be making a profit but both have plenty of cash behind them: Dafiti raised $65m in December 2012, bringing total cash raised to date to $180m, and Lamoda raised $130m in June 2013.
The Iconic, founded in late 2011, reported net revenue of SEK 218m (€25.4m or AUS$36.1m) in 2012. The Sydney Morning Herald reported slightly different figures – possibly down to currency conversion. The company recently cut about 10 per cent of its 300-strong workforce before raising AU$28m, a record for eCommerce in Australia.
The others all brought in less – as we’d expect for companies founded just last year.
Over in general merchandise, Rocket Internet’s Jumia (Middle East and Africa), Lazada (Southeast Asia) and Linio (Central and South America) brought in SEK21m (€2.5m), SEK 88m (€10.3m) and SEK 61m (€7.1m). All three are less than two years old. Airbnb clone Wimdu, set up in 2011, brought in SEK 55m (€6.4m) in the same period.
Featured image credit: Flickr user Trevor Blake