Rocket Internet SE
XHAM:RKET
Rocket Internet SE
Rocket Internet SE, headquartered in Berlin, Germany, has become a notable player in the landscape of global entrepreneurship by refining a unique business model: venture building and scaling. Founded in 2007 by brothers Oliver, Marc, and Alexander Samwer, Rocket Internet is not simply a venture capital firm but rather a startup incubator that aims to replicate successful business models, primarily in digital sectors, across emerging markets. The company's recipe for success lies in its rapid-execution approach, where it swiftly identifies successful online business models—like e-commerce, fintech, or food delivery—and replicates these models in regions where digital infrastructure is less developed, using its vast network of industry experts, operational support, and investment capital.
Rocket Internet’s revenue streams are predominantly generated through stakes in a broad portfolio of companies that it has supported from inception to potential public offerings or acquisitions. The incubator acts not just as an investor but as a co-producer of its startups, providing operational, strategic, and financial expertise to accelerate growth. By taking significant ownership stakes and leveraging economies of scale, Rocket Internet aims to build companies that can dominate their respective markets. Although its strategy has seen varying levels of success, with some ventures becoming market leaders and others closing or being acquired at less advantageous terms, Rocket Internet maintains a dynamic portfolio, continuously adapting to new market conditions and opportunities, positioning itself as a conduit for transforming disruptive ideas into profitable realities.
Rocket Internet SE, headquartered in Berlin, Germany, has become a notable player in the landscape of global entrepreneurship by refining a unique business model: venture building and scaling. Founded in 2007 by brothers Oliver, Marc, and Alexander Samwer, Rocket Internet is not simply a venture capital firm but rather a startup incubator that aims to replicate successful business models, primarily in digital sectors, across emerging markets. The company's recipe for success lies in its rapid-execution approach, where it swiftly identifies successful online business models—like e-commerce, fintech, or food delivery—and replicates these models in regions where digital infrastructure is less developed, using its vast network of industry experts, operational support, and investment capital.
Rocket Internet’s revenue streams are predominantly generated through stakes in a broad portfolio of companies that it has supported from inception to potential public offerings or acquisitions. The incubator acts not just as an investor but as a co-producer of its startups, providing operational, strategic, and financial expertise to accelerate growth. By taking significant ownership stakes and leveraging economies of scale, Rocket Internet aims to build companies that can dominate their respective markets. Although its strategy has seen varying levels of success, with some ventures becoming market leaders and others closing or being acquired at less advantageous terms, Rocket Internet maintains a dynamic portfolio, continuously adapting to new market conditions and opportunities, positioning itself as a conduit for transforming disruptive ideas into profitable realities.
Portfolio Changes: Rocket Internet reduced its stake in home24 and exited Jumia before the start of the COVID-19 pandemic. Stakes in Global Fashion Group and home24 remain significant.
Revenue Growth: On a constant currency basis, Global Fashion Group grew revenue by 8% and home24 by 14% in Q1 2020, despite the onset of the pandemic.
EBITDA Improvement: Both Global Fashion Group and home24 showed marked improvements in adjusted EBITDA margins, with home24 improving by 13 percentage points.
COVID-19 Impact: The company saw negative valuation impacts and expects continued uncertainty for private company valuations and loan portfolios.
Loss Confirmed: Rocket Internet reported a confirmed Q1 loss of EUR 162 million, mainly due to valuation drops in portfolio companies.
Strong Liquidity: Adjusted net cash declined to EUR 1.9 billion, but public stock and loans granted increased; Rocket continues to invest, focusing on both new and existing companies.
Valuations & Write-downs: Significant write-downs occurred in both public and private portfolio companies, especially in Global Fashion Group, home24, B2B Food Group, and Traveloka.
