Rocket Internet’s Australian eCommerce site The Iconic receives AU$28m funding
Rocket Internet’s Australian online retail platform The Iconic has announced a AU$28m (around €19.8m) funding led by Verlinvest. Existing investors AB Kinnevik (Rocket’s biggest investor) and Summit Partners also participated in the funding round, which the company says is the largest ever in an Australian eCommerce business.
It’s not all good news for the company though, the announcement comes shortly after co-founder Adam Jacobs revealed that around ten per cent of its 300-person staff had been let go amidst too-high costs. Rumours were also circling that Oliver Samwer, one of three brothers behind Rocket Internet, had to fly to Sydney for crisis talks. Additionally, two of the original managing directors – Ryan Touhy and Cameron Votan – left the company.
According to The Sydney Morning Herald, in the period from August 2011 to December 2012, the company made a definite loss. The business burned through AU$44.7m to make AU$30.6m in revenue, though this isn’t uncommon for early-stage eCommerce ventures. For instance, Zalando – The Iconic’s German counterpart founded in 2008 – took until 2012 to reach break-even in its home region.