Rocket Internet’s ‘Amazon for Africa’ Jumia’ made a €92 million loss in 2016

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Rocket Internet Group made a €741.5m loss in 2016 while its African eCommerce arm made a €91.9 loss (with interest, taxes, depreciation and amortization added back to it) compared to €161.3 loss in 2015 in the same period after ambitious promises to investors earlier on that the group is headed to profitability.

According to Oliver Samwer, CEO Rocket Internet, “In 2016, our selected companies progressed on their path towards profitability, while demonstrating further growth.“

The Group’s 2016 net revenue stood at EUR 50.4 million and its losses stood at EUR 741.5 million due to deconsolidation of subsidiaries, e.g. La Nevera Roja and Pizzabo, and impairment related charges of associated companies, the company said. The firm says its revenues grew by 29% from EUR 1.7 billion in 2015 to EUR 2.2 billion in 2016 while its net income margin improved by 16.4 percentage points from -31.3% in 2015 to -14.9% in 2016 with a net loss reduction of EUR 234 million.

According to the Berlin startup builder, Jumia, formerly known as Africa Internet Group had reduced losses from EUR -161.3 million in 2015 to EUR -91.9 million in 2016. It’s rebrand to Jumia from Africa Internet Group saw the firm increase its traffic and brand awareness.

Rocket Internet and its companies continue to be very well funded, with an available gross cash position of EUR 1.5 billion at Rocket Internet and an additional gross cash position of EUR 0.8 billion at selected companies and regional internet groups, as of the end of March 2017.

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Rocket Internet says it remains well funded with an available gross cash position of EUR 1.5 billion.