Wednesday 16 September 2015

Rocket Internet (RKET GY) ... enough to put you off your dinner

16th September 2015

Below is a link by, to a riveting read on Rocket's Foodpanda business in India. It's a real page-scroller with claims of dodgy cupcake orders, related party transactions, ghost restaurants and shambolic controls. 

Sunny Goel seems to be on Foodpanda India's most wanted list. Most wanted for reportedly setting up 70 fake restaurants. 

If I was an investor in Rocket, it would be enough to put me off my Foodpanda order. Fortunately, I am short. 

Incidentally, according to Rocket's 2014 report, Foodpanda racked up an impressive €6.7 million in revenue and a €38.5 million EBITDA loss during 2014. Which is obviously why it was reportedly valued at €403.8 million, with Rocket's share being 52.1% or €210.5 million. Hmm ....

Foodpanda valuation
Source: Rocket Internet 2014 annual report
Disclaimer: The information, discussions or topics referred to on this blog should in no way be considered “advice” to buy or sell anything. The information which may be referred to is freely available in the public domain and where required the source of information is referenced to for verification. While every effort has been made to ensure the veracity of any information contained within this blog, the author accepts no responsibility for the accuracy of any information contained within this blog or for the sources of information which may be referred to. Readers are responsible for their own actions and interpretation of the information contained within this blog. 

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