Another Rocket Internet company is downsizing in SE Asia
August 22, 2016
If this story sounds familiar, you may recall Global Fashion Group taking a similar approach with cutting costs amid a chilly fundraising environment. GFG sold its Thailand and Vietnam businesses in April. Around the same time, the company raised a round of funding at a valuation of €1 billion, a stark drop from its previous valuation of €3.1 billion.
Offloading Southeast Asian business arms isn’t the only thing foodpanda and Global Fashion Group have in common. Both companies trace their roots back to Rocket Internet, a firm that has come under fire for taking successful startup ideas and applying them to new geographies (read as cloning). While Rocket Internet has seen much success with this model, and even an IPO in 2014, these developments for its portfolio companies may signal a rougher future.
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