Germany's Rocket Internet has closed a deal to sell its online fashion marketplace Zalora in Thailand and Vietnam for around US$10 million each to Thailand's retail giant Central Group, news website TechCrunch reported Monday.
The website said multiple sources had confirmed the deal.
Previously TechCrunch quoted an unnamed source as saying that Rocket planned to sell off Zalora's businesses in the countries to reduce costs, so it can focus on other markets where Zalora has a better chance to make profits.
With a presence in 11 countries across the Asia Pacific, including Australia and Indonesia, Zalora’s revenues rose 78 percent last year to around $234 million, but its net loss increased 36 percent to $105 million, according to the website.
The selloff of Zalora businesses in Vietnam and Thailand is the latest sign that Rocket has been struggling to cash on the Southeast Asia market, which has been recently considered as a new frontier for commerce.
This month the German company sold more than half of its stake in Lazada, which it founded in 2012 to target the regional e-commerce market, to China's Alibaba for $137 million. Rocket 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.
In December Rocket also sold off food ordering website Food Panda to local competitor Vietnammm after three years of operations, citing financial issues. The deal value has not been revealed.