TRIALS OF A CLONE FACTORY
If anyone’s managed to figure out how to exploit a formula for e-commerce, it’s the Samwer brothers—Oliver, Marc, and Alexander. As chronicled by Inc. in June 2012, the Germany-based trio built Rocket Internet, which has copycatted dozens of overseas startups, from Amazon to Uber. Today, the estimated $4 billion empire flaunts a portfolio of more than 100 companies spanning six continents—but since launching HelloFresh in 2011, it’s been a rocky ride. —JEMIMA MCEVOY 2012 The Copycatter Gets Copycatted With a portfolio of some 30 successful startups, Rocket’s copycat strategy in emerging markets is paying off. Rocket develops HelloFresh, which it started at the end of 2011, and invests in African-based online marketplace Jumia. It also accumulates more than $1 billion from J.P.Morgan and Swedish investment company Kinnevik. Two of Rocket’s four managing directors, who had left during the past year, start a Rocket competitor, called Project A. 2013 Only the Strong Survive Rocket’s portfolio boasts 75 companies in over 50 countries— spanning from fashion to laundry to freight transport—projecting a combined revenue of $3 billion, and 200 to 250 companies by 2018. Rocket also starts shuttering its weaker early-stage ventures. Home24, an online furniture store positioned as an Ikea disrupter, lays off all of its employees in Southeast Asia. 2014 A Shaky IPO The company raises $2.1 billion in an IPO, appealing to investors who want in on Latin America, Africa, India, and Southeast Asia. But within minutes of going public, Rocket’s shares tumble by 14 percent, and they continue to fall amid concerns over losses and Rocket’s practice of overvaluing investments. Rocket announces plans to double down on its food and grocery businesses. 2016 Falling Out of Fashion Rocket’s revenue drops by 60 percent, from $139 million to $55 million. One of its biggest portfolio companies, Global Fashion Group—an online storefront for fashion sites—suffers huge losses and sees its value slashed. Shareholders lose confidence in Rocket’s strategy as its portfolio companies continue to flounder, but the company maintains its will to make three of its startups profitable by the end of 2017. 2017 Back to Earth Several of Rocket’s portfolio companies have folded, and its most successful companies are still accumulating losses. Longtime Rocket investor Kinnevik sells its stake, and Rocket’s shares and revenue fall. HelloFresh and Delivery Hero go public, but both are still unprofitable. Rocket reiterates its intention to “invest in lower-risk business models” and break even. 2018 Chasing the Next Shiny Object Rocket’s portfolio is half the size it had projected for 2018, and the company is still operating at a loss. Now, Rocket says, it’s redirecting its $3 billion war chest to fintech and A.I.