PLDT acquires 10% stake in Rocket Internet

According to a statement, the transaction is part of a strategic partnership intended to drive the development of online and mobile payment solutions in emerging markets.

The plan is to combine PLDT's experience and intellectual property in mobile payments and remittance platforms with Rocket's global technology platform, to provide products and services for the "unbanked, uncarded and unconnected" in Asia's emerging markets.

Founded in 2007, Rocket provides a platform for building and scaling of e-commerce businesses outside the US and China. The firm has more than 20,000 employees in a network of companies across over 100 countries with aggregated revenues of more than EUR700 million ($936 million) in 2013.

Its most prominent brands in Southeast Asia are Zalora and Lazada. The company also has Dafiti, Linio, Jumia, Namshi, Lamoda, Jabong, Westwing, Home24 and HelloFresh, across Latin America, Africa, Middle East, Russia, India and Europe.

Rocket sees financial technology and payment at its the third major area of focus after e-commerce and marketplaces. PLDT claims to have pioneered a number mobile banking and mobile wallet services through its wireless subsidiary, Smart Communications. Its services include online money transfers, payments, disbursement, banking and security. The subsidiary handled transactions valued at approximately $4.5 billion in 2013.

Its mobile banking platform is currently employed by the top three banks in the Philippines. Smart's mobile money services have also been used by United Nations and Philippines government agencies for cash distribution and other relief and rehabilitation efforts in areas affected by recent natural disasters.

PLDT's investment in Rocket will be made via a subscription of new shares issued by the company. PLDT will have the right to appoint one member to Rocket's nine-person supervisory board. The transaction will be financed by available cash and new debt.PLDT is the third investor to back Rocket. Previous investros includes AB Kinnevik, Access Industries and Global Founders.

"Strategic partnerships are a core part of Rocket's strategy to provide great services to consumers and rapidly roll out new Internet based business models across diverse geographies," said Oliver Samwer, Founder and CEO of Rocket Internet. "Financial technology is a key focus sector for Rocket and this partnership will allow us to build on PLDT's world-class innovations in mobile money and micro-payments and accelerate the delivery of those solutions around the world."

PLDT - which is listed on both the Philippines and New York stock exchanges - is the leading telecommunications provider in the Philippines. The company offers a wide range of telecommunications and multimedia services across the Philippines' extensive fiber optic, fixed line, and cellular networks.

 

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• Topics
• Consumer
• Financials
• Technology
• Early-stage
• Consumer
• Technology
• Rocket Internet
• Philippines
• Financial Services
• Venture