Rocket Internet, the German start-up incubator and owner of Zalando, has suffered a huge loss in the first half of 2016. The valuation of its fashion start-ups fell sharply, from 3 to 1 billion euro.
Goals reiterated
Rocket Internet had a loss of no less than 617 million euros in the first half of 2016. It mainly pointed towards bad results at its Global Fashion Group, which contains its online fashion retailers and made a loss of no less than 383 million euro. The value of the shares of the company decreased by 33 percent this year alone, and even worse: where in 2015 the fashion web shops of Rocket Internet were valued at more than 3 billion euros, but at the moment they are worth only 1 billion euros.
Still there is no sign of panic at Rocket Internet, as CEO Oliver Samwer has reiterated his goals for the full year. “We still expect at least three of our selected portfolio companies to turn profitable by the end of 2017, and that the aggregate EBITDA losses of the selected portfolio companies will have peaked in 2015”, says Samwer.
