Rocket Internet to focus on ecommerce in Philippines with new PLDT joint venture

Ecommerce giant Rocket Internet and Philippine telco PLDT are on a roll. The partners are setting up another joint venture, this time for online business development in the Philippines.

This comes just two weeks after the duo signed an agreement to form a 50-50 venture for online and mobile payment solutions, with a focus on emerging markets.

In a joint statement today, Rocket and PLDT said they will set up the Philippines Internet Group (PHIG). Voyager Innovations of PLDT will invest EUR 30 million (US$34.7 million) for a 33.3 percent stake in PHIG, with an option to increase this to 50 percent. The remaining shares will be held by Asia-Pacific Internet Group, which is 50 percent owned by Rocket.

PHIG, which is the latest of many regional Rocket spin-offs, will accelerate the rollout of online startups and other activities relevant to the Philippines, according to the companies involved. It will drive the activities of high-growth Rocket ecommerce companies already operating in the country, such as Lamudi, Carmudi, Clickbus, and Pricepanda, as well as launch new web companies this year.

PLDT says the investment is part of its strategy to develop new revenue streams and invest in businesses that provide digital growth opportunities.

Rocket, for its part, considers the Philippines a “highly promising market,” with a population of about 100 million people and more than 44 million internet users.

Their latest agreement is subject to the approval of the regulatory authorities and is expected to be concluded within the first quarter.

See: Rocket Internet’s earnings: small numbers but strong growth in Asia