Welcome to day two of Startup Asia Singapore 2013. First up is Stefan Jung, co-founder and Managing Director at Rocket Internet Southeast Asia who will be interviewed by Murli Ravi, Head (South Asia) at JAFCO Asia.
#09:35: 1.5 years ago, Stefan got a early 7.30 am call from the Samwer brothers, founders of Rocket Internet, and was asked to set up the Rocket Internet’s Southeast Asia office. He said yes and got the first flight to Jakarta. Fast-forward, Stefan has set up various businesses ranging from Foodpanda, Lazada, Zalora and more. For Rocket, the main markets are India, Brazil and Indonesia. Singapore and Hong Kong are relatively small markets. Ravi added that because market is so efficient (in Singapore and Hong Kong) there aren’t many opportunities there.
#09:39: Talking about India, Stefan says that it is extremely difficult to set up an office and business in India. The same applies to Indonesia. Ravi added that in Vietnam and Indonesia, you need to have a local partner to set up a business. Stefan, who lived in Beijing for a year, understands the importance of guanxi (meaning, close relationships with others).
#09:35: Rocket Internet is great because it has a global footprint. For example, Foodpanda is rolled out in 25 countries at one go. Rocket Internet moves very quickly but it sometimes has to close some of its businesses down. Taiwan for example, after many conversations with investors and management, isn’t part of Rocket’s global vision and thus it shut down Zalora there. If a dollar is better spent in Indonesia compared to Taiwan, then it is a good decision.
#09:50: Stefan says that he is very passionate about entrepreneurship. Rocket isn’t just about data but also connecting with entrepreneurs under the Rocket Internet network, being able to execute things on a global scale. Feel the passion! Rocket did look at payment in Southeast Asia but it wouldn’t be fast, “not the Rocket speed” which they would like. Rocket’s Global Venture Fund, however, will be able to invest in payment solutions. Though Rocket can start building a logistics company which can be pushed and executed at a much faster pace.
#09:53: Is Rocket Internet overpaying staff in Southeast Asia? Stefan says that it is necessary in the beginning to attract the right talent. But as Rocket establishes itself in Southeast Asia, people want to join Rocket because there is much to learn. What he sees is that some ex-Rocket people, after learning much at Rocket, tend to start their own company. Stefan sees this as a way that Rocket contributes to the startup ecosystem.
#09:57: Murli asked how Rocket will be keeping its employees? Stefan says its culture and environment are unique enough to keep its best people. Murli: Are you afraid of Amazon, Alibaba, 360buy? Stefan: No.
This is a part of our coverage of Startup Asia Singapore 2013, our event running on April 4 and 5. For the rest of our Startup Arena pitches, see here. You can follow along on Twitter at @techinasia, and on our Facebook page.
Rocket Internet from the architectural firm of Southeast Asia