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'Not all Rocket Internet startups in Nigeria are profitable'

By , ITWeb
Nigeria , 03 Mar 2015

'Not all Rocket Internet startups in Nigeria are profitable'

Even though Rocket Internet-backed African Internet Holding (AIH) has several startups in Nigeria operating in different sectors where they are providing essential services, indications emerged last week that not all of the startups are profitable.

Addressing journalists at the official opening of the AIH's new offices at Yaba, Nigeria's Silicon Valley, the managers of the AIH startups said even though many of the startups are household names, not all of them are profitable yet.

Responding to a question on AIH startups' community social responsibility (CSR) services, Marek Zmyslowski Founder and Managing Director of online booking platform Jovago.com said while AIH companies are increasingly becoming very popular in Nigeria and beyond, they are still startups and not all of them are profitable.

"Let's not forget that we are also startups and not all of us are profitable yet," he said.

The issue of profitability is a major topic among startups and other tech companies in Nigeria. Rocket Internet has invested in several companies in Nigeria including Jovago, Carmudi, Easy Taxi, Kaymu, Hello Food, Lamudi and Jumia Nigeria.

Although the heads of these companies didn't reveal the ones that are yet to be profitable, ITWebAfrica gathered Hello Food could be one of them.

Furthermore, reliable source also revealed Rocket Internet's largest company in Nigeria, Jumia wasn't profitable last year.

"It was a shocking revelation that many in the industry didn't know about. But it is quite expected because this is an emerging market and I believe Rocket Internet is currently interested in ensuring that its companies are well positioned to dominate in the market," the whistleblower told ITWebAfrica under condition of anonymity.

Part of Rocket Internet's move to dominate the market is its latest venture Everjobs which it announced today. The goal of the new venture is to digitalize and simplify the job market in Asia and Africa.

But as vast as AIH's services in Nigeria are, Evangeline Wiles, Managing Director of online marketplace Kaymu Nigeria said the company is focused on providing essential services and making life easier for its customers in Nigeria, Africa and other parts of the world.

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