Vietnam electronics retailer Nguyen Kim buys Zalora's local operations
Zalora, one of Southeast Asia’s biggest online fashion marketplaces, has completed a deal to sell its Vietnamese operations electronics retailer Nguyen Kim, news website VnExpress reported on May 15, quoting Zalora Group.
The subsidiary of Germany's Rocket Internet has also sold its unit in Thailand to Thai retail giant Central Group, the website said, adding that the value of the deals has not been revealed.
Last month news website TechCrunch cited multiple sources as saying that Central Group would acquire them for US$10 million each.
Central owns a 49% stake in Nguyen Kim, which has 21 stores around Vietnam, through its subsidiary Power Buy.
The selloff in Vietnam and Thailand is part of Rocket's efforts to reduce costs and focus on other markets where Zalora has a better chance to make profits, according to TechCrunch.
With a presence in 11 countries across the Asia Pacific, including Australia and Indonesia, Zalora’s revenues rose 78% last year to around US$234 million, but its net loss increased 36% to US$105 million, it said.
Last month, the German company, which has been struggling to cash on the Southeast Asian market, sold more than half of its stake in Lazada, which it founded in 2012 to target the regional e-commerce market, to China's Alibaba for US$137 million. Rocket retains an 8.8% stake.
In December Rocket sold off food ordering website Food Panda for an undisclosed price to local competitor Vietnam after three years of operations, citing financial issues.