21. February 2013–
Rocket Internet-backed online fashion retailer Zalando is launching another, independent brand of its own – Kiomi.
Zalando, while still making a loss overall, broke even last year for the first time in core region Germany, Austria and Switzerland. The company was recently valued by its principal investor Kinnevik at $2.8bn and reached $1bn in revenue last year.
Kiomi, priced at a roughly similar level to Spanish corporation Inditex’s popular brand Zara, will reportedly be run independently from the rest of Zalando, either as a separate company or as a separate business sector.
As we flagged back in July, Zalando is likely hoping to bring in higher profit margins with its own brands. Given Zalando’s size and reach – into 14 European markets – it should also help maximise the company’s potential as an infrastructure platform.
Rocket Internet is rumoured to be preparing to take at least one of its 40-plus portfolio companies public. Zalando is considered one of the most likely to list but the company’s managing director, Rubin Ritter, said in January that an IPO is not currently planned.