Rocket Internet To Launch 10 Startups In 2015

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Rocket Internet will be launching 10 startups in the coming year and has said that it will be working closely with Facebook on advertising.

The company has publicized its agreement with the giant social network in a bid to help it with advertising strategy and automation of ads and giving it access to tests of new advertising features.

Rocket Internet says that its 12 most successful companies saw average growth in gross merchandise volume of 104 percent in the six months to June 30. The company’s shares were up 0.2 percent at 47.92 euros.

Investors who bought shares in Europe’s largest tech listing since 2000 were hoping to ride a wave of euphoria which culminated in Alibaba’s (BABA.N) bumper New York flotation.

However, the shares came under pressure over concerns about how long it might take the Rocket start-ups to turn a profit.

Rocket Internet was founded in2007 by brothers Oliver, Alexander and Marc Samwer, the company has set up dozens of e-commerce and online marketplaces for everything from taxis to meal deliveries, aiming to replicate the success of Amazon (AMZN.O) and Alibaba in new markets like Africa, Latin America and Russia.

Oliver Samwer, chief executive said the new businesses were on track towards profitability, reiterating his view that e-commerce start-ups take six to nine years to break even.

Overall, the 12 top companies, while still-loss-making, saw an average rise of 12 percentage points in the margin on their average earnings before interest, taxation, depreciation and amortisation (EBITDA) compared with the figure for 2013.

Rocket expects to launch another three companies in 2014, bringing the total for the year to 10, and then start at least another 10 start-ups in 2015.

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