[Executive Edge] To the stars with rocket Internet

Rocket Internet has many brands in the Philippines. As of this writing, they have Zalora, Lazada, EasyTaxi, Foodpanda, Lamudi, Lamido, Carmudi, and Pricepanda, though this may change by the time this piece is published. And that’s only slight of an exaggeration. Rocket Internet has been known to start full-scale, country-wide operations after only a few weeks of setting up shop.

Some skeptics would argue that this is a function of their derivativeness. The criticism is that because rocket Internet is just in a sense brokering innovation (bringing ecommerce from the United States and Europe to emerging markets of developing countries), there is not much extra work to be done. With a business model that’s already been proven, the ensuing task is more akin to executing a plan than blazing a trail.

I would like to argue otherwise. Whether their products are completely original or not is irrelevant, rocket Internet has a positive effect on the country. Take, for example, both Zalora and Lazada. They are said to be Amazon clones, but you will never hear this from a Filipino, who is just happy to have access to ecommerce at all. To a Filipino, Amazon has never existed.

Or you can take the case of car listings site, Carmudi. By vetting car listings, so that the ones up on the site are legitimate and safe, it makes it easier for Filipinos to find the car that suits their needs. The fact that this idea is not original (i.e. came first from the United States) does not take away from the fact that it gives Filipinos value.

To create something like Carmudi takes work, and this entrepreneurial spirit is evident most in country manager Nicolas Boldt. I spoke with him about what it’s like to run a rocket Internet-backed company in the Philippines.

How rocket Internet operates

Boldt is a prototypical rocket Internet leader. They generally hire fresh graduates (undergrad or grad), consultants from the top consulting firms, or precocious entrepreneurs, which is the sub-category that Boldt falls into.

“I started my first company when I was 21 and sold it when I was 23,” he said. “Then I went into sales since it was always my passion to communicate and convince people of my ideas and products.”

Not soon thereafter, rocket Internet came calling. “After that, rocket Internet approached me to start Carmudi in the Philippines and I immediately went for the opportunity, packed my bags, and left basically right after I was hired,” Boldt said. “I have never been to Asia before, hence the experience is very special for me. Since the beginning, the Philippines has already struck me as a great market and a beautiful country.”

Though Boldt is already a seasoned entrepreneur, many people have praised the Rocket experience that is universal to all countries – the Philippines or otherwise – as being the best preparation an aspiring entrepreneur can have. In fact, the company itself celebrates its alumni who have gone on to found many successful ventures on their own.

Boldt explained the rocket Internet culture. Boldt said, “You are given all the responsibility since day one and it is up to you to start up the company. You are given complete freedom in terms of coming up with the processes of the company but rocket Internet steers and guides you towards doing that in the best way possible. We have 15 years of experience and 100+ successful companies all over the world, so you are working with the best mentors you can ask for.”

As a result, Boldt concluded, “With all the responsibility in your hands, great mentors that steer you the right way, and a very young, open-minded, ambitious team, you will definitely be fully prepared to start your own company in the future.”

Boldt thinks his venture, Carmudi, which he believes is “the online vehicle marketplace to go to in the Philippines,” plays into the particular strengths that rocket Internet has in the marketplace.

“We did what rocket is best at: bringing offline businesses online, in the case of carmudi.com.ph this means classifieds from newspapers and magazines,” Boldt said. “The Internet is clearly the best channel to advertise and find your car – for sellers, online classifieds are cheaper and have even wider reach. For buyers, our website makes it so easy to customize your choice of car, and you can specify everything from price over color, brand to even engine size.

Boldt, like other rocket Internet executives, has an unshakeable, if reassuring, confidence in how successful they will be. He said, “Rocket Internet never enters a country unless we know we can be number one, and the ventures that we have opened so far in other different countries have all propelled at rocket speed to be the market leader.”

For the specific outlook of Carmudi in the Philippines, Boldt said, “We are poised to win the market because we do two things at the same time – grow the business quickly and maintain high quality. The business grows quickly because we only hire very ambitious people to work for us. We maintain high quality starting from the first interaction with the customer.”

In addition, Boldt specified, “We make sure that every listing placed on the website is thoroughly checked by our highly-approved quality assurance system and that every client is personally attended to by our account management team. We provide personalized meetings on how they can sell their cars faster online based on the kind of cars each company has and give reports on their progress in the company.”

The confidence is well-rooted within reality. Though rocket Internet has seemingly limitless funds (on the order of billions – dollars not pesos), its most glaring advantage, at least in the Philippines, is access to experts in ecommerce, of which our still nascent tech industry has few.

Rocket Internet shares in the knowledge trust of HQ – “Rocket Internet backs us up with full support and expertise from Berlin, Germany” – and also gets advice from other portfolio companies. Boldt describes the relationship with other companies as one of mutual benefit.

“We help each other in any way possible from sharing offices to launching joint campaigns,” he said. “It went so far as to having a table in the Lazada office when started operations in the Philippines with only 3 people. Three months later, we had moved out with a team of more than 20 people into our own office on Ayala Avenue.”

Adopting the rocket Internet way

The speed at which rocket Internet operates is so renown that I feel no write-up would be complete without asking Boldt how other Philippine entrepreneurs can do the same. He preceded his comments with an overview of the Philippine marketplace. He said, “E-commerce is definitely interesting in the Philippines because everyone is so tech-savvy and it is really easy to do business here for international companies when everyone speaks English so well.”

Boldt recommended that other entrepreneurs expand their network, make every minute count, and push themselves to their limits (and go past that).  

Expand your network

“Find out who can help you and meet them. Get as much knowledge as you can and use that to move your business forward. There are endless opportunities and ways to get to key contacts. You just have to be resourceful in knowing where to look. Try social media, ask the people around you, or network at events. You’d be surprised at how easy it is to meet very important people, especially here in the Philippines, where people are so open and friendly. We came to the Philippines as 3 expats, but right now we have close partnerships with key decision-makers in different sectors. Filipinos are very strong on relationships and it is so important to choose who you network with and put effort into those connections as well.”

Every single minute counts

“Think about it – every minute you spend doing something else is an opportunity for someone to replicate your business model in a faster and better way. You need to be passionate and serious about making your business grow. Long hours, dedication and giving yourself goals every single day helps you keep track of your progress. Filipinos are super tech-savvy, so you don’t really have to worry about the openness of people to e-commerce in general or their lack of understanding. Your main challenge here would be to push harder and work faster than everyone else.”

Exceed your limits each and every time

“You will be surprised by what you are capable of doing when you go outside of your own boundaries. There is no limit to what you can achieve – the only real limit is the boundary you give yourself. There are always ways to work around hurdles and circumstances, and it is in your hands to find that way around it.”

Boldt himself embodies these principles. Take for example the advice to always push your limits. Boldt could have easily kept the car listings model intact, but he wanted to localize it to the Philippine market to better serve their needs. After observing that “Filipinos love to text,” they decided to add texting functionality to their site.

“When we learned about that,” Boldt said, “we added a function on the website especially for the Philippines wherein you can send a text to the seller through Carmudi.com.ph indicating your name and number for him to call you back.”

It’s these kind of details that I think will make Carmudi a winner – they have trained themselves to see opportunity where others see impossibility. – Rappler.com

Rappler business columnist Ezra Ferraz graduated from UC Berkeley and the University of Southern California, where he taught writing for 3 years. He now consults full-time for educational companies in the United States. He brings you Philippine business leaders, their insights, and their secrets via Executive Edge. Follow him on Twitter: @EzraFerraz