Business

Rocket Internet Plans To Sell Jabong, Foodpanda, FabFurnish: Report

NEWS WORLD INDIA | 0
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| September 24 , 2015 , 15:31 IST
German-based firm, Rocket Internet, is likely planning to sell its top e-commerce companies marking a big shift in strategy for the German firm. ecommerce According to a report of The Economic Times, the founders of Rocket Internet will now invest directly in companies through a venture capital fund. Fashion retailer Jabong, food services aggregator Foodpanda and furniture retailer FabFurnish are on the block, the report said. The company is in talks with Paytm to sell Jabong. ALSO READ: E-Commerce Generates $1.2 Million Revenue Every 30 Seconds: Study "A Rocket Internet spokesperson said the company would not comment on what he said were "rumors." Foodpanda India chief executive Saurabh Kochhar said, "Rocket Internet continues to believe in the Indian internet consumer market. We will continue to be invested." Global Founders Capital, a European investment firm founded by Rocket Internet CEO Oliver Samwer and his brothers and Fidelity Growth Partners Europe alum Daniel Jones, has already begun investing in India. Kochhar said GFC is a 100% subsidiary of Rocket Internet. Last year, startups such as TinyOwl and Swiggy have emerged with business models rivaling Rocket Internet companies in India, and securing huge sums from investors. Companies including Flipkart, Snapdeal and Amazon are also rapidly adding segments such as fashion and furniture, competing with Jabong and FabFurnish. "Rocket Internet just failed to anticipate the depth of competition in India. The internet business in India is a different beast altogether," said a former senior executive at a Rocket Internet company in India.