 "Kiren Tanna")
Berlin-based Rocket Internet, which has investments in Jabong and Foodpanda, among others, has been on an acquiring spree in Asia. Rocket Internet’s Asia-Pacific group co-chief executive, Kiren Tanna, tells Digbijay Mishra and Nivedita Mookerji investments in India this year will exceed levels it has done so far. India is on a priority list for Rocket Internet across key sectors, he says. Excerpts:
Rocket Internet has been in the news, with an array of acquisitions. What is the macro picture for the company?
We announced a series of acquisitions in the past week and the latest is in West Asia, where Talabat and 24h have been acquired. We are looking at a global consolidation now. This is very interesting because more and more people are buying/ordering food online and the trend is visibly strong in India, too. Rocket Internet has a stake of close to 40-50 per cent in Foodpanda, which started in 2012 and within such a short span of time, it has done exceedingly well.
Where does India figure in the pecking order for Rocket Internet? What more could be expected for the India market?
India is right on the top of our mind and it is a big priority for us. People are increasingly buying online and we are looking for more investments in the country. India alone is on a par with all other Asia-Pacific countries, in terms of potential. So, India will see heavy investments and these should surpass what we have already done in this market. India is an online-friendly country and there is growing mobile consumption. People are shopping via mobile, apps and that opens up a big opportunity in India.
What are the key areas you are looking to invest in?
We have divided the areas into three important segments, which we are looking to develop and invest in. The first is e-commerce, where we already have presence via Jabong and Foodpanda. Then, we are looking at a marketplace model for various services and the third is financial technology services. A marketplace would not just mean a Flipkart or Snapdeal, but we are looking at many possibilities. India is already a competitive market and local players have a strong foothold in their respective segments.
What are the key areas that drive your investment calls in grooming start-ups?
First, we look at the model and how scalable it is. We then look at the potential of suppliers, along with our own expertise.
Then of course, the trust factor is there. After all these things, we look at the amount of funding required and marketing push needed to boost the business.
What is your exit model?
We are never in a hurry to exit and do not think about it too often. Once we invest in a company, we want to establish it and make it big. Whether it's Jabong or Foodpanda, the intent is common. Having said that, we have made some smart exits in some of our ventures and we keep looking at it. But as I said, we don't think too much about exits.
Are you planning to bring Easy Taxi into India, given the market is growing rapidly here?
We have decided to skip India for Easy Taxi as there are multiple issues, including regulatory loopholes, which led us to take this decision.
With approvals for Global Fashion Group already in pocket, how do you plan to roll out and what is its significance?
We had these five major fashion brands, including Jabong, across the globe but then we thought how it could pan out if we could bring them together and widen the arena. This would be a big opportunity as iconic names from globe will be made available to buyers.
There are reports of investors of Jabong being in talks with Amazon for a sellout. How far have the talks progressed?
I won't be able to comment on that, given our policy.
