Rocket Internet Plans To Launch 10 New Startups Next Year
Rocket Internet made the announcement that it will be launching ten new startups come 2015. Additionally, the company will be working in close relationship with Facebook when it comes to advertising.
Rocket Internet has made public its partnership with Facebook, which will be helping the company in its advertising strategies and ads automation; allowing Facebook to test new advertising features.
In the last six months leading up to June 30, 2014, Rocket Internet saw its twelve most successful companies grow by 104% in gross merchandise volume. This led to the company’s shares rising by 0.2% to €47.92.
Shareholders who bought shares in the company back in 2000 were hoping the company would benefit from the euphoria that climaxed with Alibaba’s shares floatation at the New York stock exchange. The euphoria has since died down, after concerns begun emerging about just how long will it take Rocket Internet new start-ups to start making profits.
Oliver Samwer, a co-founder and chief executive was quoted saying that the new businesses show all the right projections to making profits. He also added that an e-commerce start-up usually takes between six to nine years before breaking-even.
But generally, the company’s twelve top companies even though still-loss-making; they have recorded an average increase of 12% in the margin of average earnings before taxation, interest, depreciation and amortization compared to the 2013’s figures.
Before the end of this year, Rocket Internet will be launching three more companies, making a total of ten companies by 2014. In 2015, the company plans to start a minimum of ten other start-ups.
The company was founded back in 2007 by three brothers Oliver, Alexander and Marc Samwer. The company has since launched many e-commerce and online stores dealing with products and services ranging from taxi hailing to food deliveries.