After selling food ordering website Food Panda to a local competitor in Vietnam at the end of last year, German-owned Rocket Internet now reportedly plans to sell its online fashion marketplace Zalora in the country and Thailand.
The selloff is part of efforts to cut costs so that Rocket can focus on other markets where Zalora has a better chance to make profits, news website TechCrunch reported Thursday, citing an unnamed source.
With a presence in 11 countries across the Asia Pacific, including Australia and Indonesia, Zalora’s revenues rose 78 percent last year to €208 million ($234 million), but its net loss increased 36 percent to €93.5 million ($105 million), the website said.
A local conglomerate has agreed to buy Zalora Thailand for $10 million, while the buyer of the Vietnamese business is still unknown, it said.
In December Rocket Internet sold off Food Panda
after three years of operations, citing financial issues. The deal value was never revealed.
The report about selling off Zalora comes just a few days after Rocket Internet sold more than half of its stake in Lazada, which it founded in 2012 to target Southeast Asia's e-commerce market, to China's Alibaba for $137 million. The German company now holds an 8.8 percent stake.
Alibaba has also acquired another 12.4 percent from other investors and $500 million worth of newly-issued shares, which has increased Lazada's value to $1.5 billion, according to TechCrunch.