Rocket Internet says it lost $682m so far this year

It runs a number of startups such as Foodpanda, Zalora, and Daraz, reports Tech in Asia

German startup factory Rocket Internet announced today financial results for some of its portfolio startups in the first nine months of 2016.
 

The earnings statement touts several achievements, such as improving profit margins and net revenue, bragging that selected companies have reached record revenue in the year so far.
 

But a cursory reference much lower down points to a darker reality: the well-funded firm – which runs a number of startups such as Foodpanda, Zalora, and Daraz – lost $682 million in the first nine months of 2016.
 

Rocket attributes most of the loss to a slump in the value of its fashion ecommerce startups, which were collectively downgraded by more than $2 billion earlier this year.
 

 

It’s not short on cash, however, with $1.7 billion in the bank and a further $1.16 billion available at the portfolio startups.
 

Full picture
 

It’s impossible to get a grip on the entire spectrum of Rocket’s financial performance. That’s because it only released earnings figures for nine startups, out of a total of over 100 in its global network.
 

Foodpanda saw net revenue grow to $34.6 million in the first nine months of the year, up by 102.3% from the corresponding period last year. Overall, it lost a total of $43 million.
 

Jumia, Rocket’s online store for African markets, saw net revenue decline sharply to $57.8 million, down 52.4% from the same time last year. Its overall loss was recorded at $81.1 million.
 

Last week, Rocket said its Global Fashion Group had lost $106 million in 2016 so far. That includes startups like Zalora and Namshi.
 

Rocket Internet shares closed yesterday at $19.10, down more than 50% from the IPO debut of $39.31.

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This is an excerpt from Tech in Asia. You can read the full article here