La startup accelerator based in Berlin Rocket Internet has taken an important step before its next IPO in Germany, which is scheduled for this month. Rocket Internet announces that it will consolidate five of the fashion brands that has been established in the emerging markets into a single entity that will have a combined valuation of € 2,7 billion ($ 3,5 million).
With this fusion, Rocket Internet will have a greater reach potential than they have Amazon and other greats e-commerce retailers, with scope in the five continents.
Dafiti (Latin America), jabong (India), Lamoda (Russia and CIS), the Namsh (Middle East) and zalora (Southeast Asia and Australia) will henceforth be known as GFG. The company will cover all five continents, although Rocket Internet says it will keep separate inventories, as well as business models and other settings for each market.
Rocket Internet say what GFG It has around 4,6 million active clients, and it has more than 7.000 employees worldwide. Although not present in the US market, GFG has, at first glance, potentially greater global reach than Amazon and other leading eretailers, although e-commerce is still nascent in many of these markets.
Rocket Internet says that "essentials" of the direct and indirect shareholders in the five e-commerce companies will contribute their shares to the newly formed Luxembourg-based entity. The three largest shareholders of GFG will be kinnevik (25,1%), Rocket (23,5%) and Access Industries (7,4%).
«GFG will focus on capturing the opportunity for a massive growth in fashion e-commerce in emerging markets. Each of the business units will be able to build on the original Rocket platform and continue to draw on the knowledge and experience gained across 23 countries. Oliver Samwer, CEO of Rocket Internet, said in a statement. "I look forward to working with our founders to further accelerate GFG's growth and development profile."
Rocket Internet, which started its operations in Europe, has in recent years focused much more on developing markets, which are much less saturated in terms of use and competition, and are full of consumers who want buy online and that they have little to choose from, and therefore represent an opportunity for rapid growth. The opportunity is great: GFG will collectively cover 23 countries and 2,5 million people, with an estimated market value in the fashion sector of 330 million euros.
GFG will keep multiple Business models including full inventory, brand name stores and markets tailored to opportunities within local markets. In addition, GFG will continue to explore the development of adjacent categories such as the personal care. He mobile commerce will continue to be a central focus for GFG through the continued development of mobile apps targeting the growing smartphone user base in their territories.
“The creation of GFG brings together five powerful digital brands led by a single group of highly skilled founders and executives. By operating as a single entity, Dafiti, Jabong, Lamoda, Namshi and Zalora will be even more effective in expanding their leadership positions in their respective markets. said Lorenzo Grabau, CEO of Kinnevik.
The measure follows others restructuring Rocket Internet activities. Yesterday Zalando, which Rocket Internet spun off about a year ago, raised its intention to go public in Frankfurt later this year. In August, Rocket Internet had a 445 million dollar investment from the Philippine telecommunications company PLDT to work for more companies (specifically around payments and e-commerce) in emerging markets. Later in the same month, united internet acquired a stake in Rocket Internet that valued the company at 4000 billion euros ($ 5300 billion).