Home / Tech / Rocket Internet cuts expenses on lending sites, eyes emerging markets
Rocket Internet Logo hires PNG

Rocket Internet cuts expenses on lending sites, eyes emerging markets

Frankfurt—Tech investor, Rocket Internet focuses on ventures pertaining to emerging markets. The company has chosen to reduce stakes in a couple of Europe based financial service ventures. The Germany-based Spiegel magazine imparted light on the journey of Rocket Internet, after facing several setbacks.

Lendico retreat operating from three countries

Lendico, a lending site has retreated from operations across three countries. Previously, it existed and shaped up its business in six countries. Zencap, a corporate lending firm catered to 200 odd loans to a myriad of small firms. Spiegel mentioned collectively that the entire value of the lending opportunities spanned out to a net value of 14 million euros or $16 million in the first year.

The Delivery Hero conflict-in-interest

Berlin-based Rocket Internet received a setback in the latest move, focused on investing in Delivery Hero, a food delivery group, competing with Foodpanda. Foodpanda has expanse across 40 countries across the globe. Despite taking a formidable 39% stake in Delivery Hero, Rocket think-tank failed to make into the supervisory board of the food delivery company.

Spiegel mentioned that Niklas Oestberg, the founder of Delivery Hero opposed giving a seat to Rocket Internet. There were speculations and rumors that Rocket has global exposure through Foodpanda. Hence, with this ownership, being a part of the top rungs of Delivery Hero may call for conflicting interests.

No spokesperson from Rocket was available for commenting on the scenario with Delivery Hero. Rocket Interest has a series of investments in marketplaces, financial services companies and e-commerce and economies of emerging markets. The company is slated to reveal their FY2014 financial results on Tuesday.

Rocket Internet eyes emerging markets globally

Contrary to Foodpanda receiving investments worth $100 million from Rocket Internet, Lendico has notched up 20 million euros. The company has turned towards the emerging markets and have cut its investments across lending sites.

Leave a Reply

Your email address will not be published. Required fields are marked *