PLDT, Rocket Internet joint venture to develop PHL-based online businesses

Philippine Long Distance Telephone Company (PLDT) and Germany's Rocket Internet AG are forging a joint venture to strengthen an existing partnership and develop internet-based business in Philippines.

 

"PLDT and the Asia Pacific Internet Group (APACIG) will become partners in the new Philippines Internet Group (PHIG) which will concentrate on creating and developing online businesses in the Philippines," publicly-listed PLDT said in a disclosure to the Philippine Stock Exchange.

 

PLDT, through unit Smart Communication Inc.'s wholly-owned subsidiary Voyager Innovations Inc., is investing €30 million for a 33.3-percent stake with an option to increase the investment to 50 percent.

 

The remaining equity is held by APACIG, which is 50-percent owned by Rocket Internet.

 

The deal, subject to regulatory approval, is expected to be completed with the first quarter of the year.

 

"Following the successful model of Rocket’s four existing Regional Internet Groups, PHIG will leverage local market and business model insights, facilitate commercial, strategic and investment partnerships, enable local recruiting and sourcing and accelerate the rollout of online startups," the statement read.

 

The joint venture will drive the activities of high-growth companies already operating in the country, like Lamudi, Carmudi, Clickbus and Pricepanda, and aims to launch numerous new companies in the coming quarters.

 

Last August, PLDT shelled out €333 million for a 10-percent stake in European e-commerce platform Rocket Internet AG. 

 

Rocket Internet provides a platform for consumer internet businesses outside the US and China, with prominent brands including Zalora and Lazada.

 

Other brands include Dafiti, Linio, Jumia, Namshi, Lamoda, Jabong, Westwing, Home24 and HelloFresh, in Latin America, Africa, Middle East, Russia, India and Europe. – Kathryn Mae P. Tubadeza/VS, GMA News