Rocket Internet Increases Stakes in its Leading e-commerce Businesses
Holtzbrinck Ventures Becomes a Shareholder in Rocket Internet
22 AUGUST 2014
SummaryMunich & Berlin, Germany, 21 August 2014 – Holtzbrinck Ventures (“HV”) and Rocket Internet AG (“Rocket”) are pleased to announce that HV, a long-term, early-stage investor in companies started by Rocket, is contributing its entire stakes in seven of Rocket’s most developed e-commerce businesses directly into Rocket, in exchange for equity in Rocket.
The stock for stock transaction builds on a long standing and successful partnership between HV and Rocket. This transaction allows Rocket to progress its declared strategic objective of owning larger stakes in its network of companies.
The contribution includes HV’s stakes in the emerging markets fashion businesses Lamoda, Dafiti, Jabong and Namshi, held through the holding companies BigFoot and BigCommerce; it also includes direct stakes in home & living businesses Home24 and Westwing, as well as in HelloFresh, a leading home food delivery company.
In return for this contribution, HV receives a 2.5% stake in Rocket. All contributed stakes were valued on the basis of the last external funding round of the respective companies.
HV's investment in Rocket will be in new shares issued by the company, of the same class and bearing the same rights as shares held by current investors. Following the transaction HV joins Investment AB Kinnevik (18.1%), Access Industries (8.3%), PLDT (8.4%) and United Internet (10.4%) as external investors in Rocket, in addition to Global Founders Fund GmbH (formerly: European Founders Fund GmbH), which will hold (52.3%).
Oliver Samwer, co-founder and CEO of Rocket, commented:
“Rocket’s platform allows us to build and scale online businesses in fast growing markets all around the world. Holtzbrinck Ventures has been an early and long term supporter of many Rocket companies built on this platform, and has invested in more Rocket companies than any other external investor. This transaction helps Rocket pursue its strategic objective of owning larger stakes in its companies and we welcome HV’s support at the group level. We look forward to continuing our successful partnership.”
Martin Weber, General Partner of Holtzbrinck Ventures, said:
“We are excited to become a direct shareholder in Rocket and build on our long term cooperation. We are pleased to have made many successful investments alongside Rocket and have tremendous respect for their track record and ability to create successful online companies. We look forward to working with Oliver Samwer and the Rocket team directly as the company continues to grow around the world.”
About Holtzbrinck Ventures
HV Holtzbrinck Ventures has been investing in internet companies for over ten years, primarily during their start-up phase. In this time, Holtzbrinck Ventures has financed over 120 companies and has established itself as one of the few venture capital firms that has also founded market leading internet companies. Today Holtzbrinck Ventures is one of Europe’s most successful early-stage investors in the internet sector, with investments in some of the internet’s biggest companies including Zalando, Wooga, Groupon, Westwing, Experteer, Dreamlines, Lazada, Flixbus, Quandoo, Lendico, Outfittery, Delivery Hero or Brands4Friends.
About Rocket Internet
Rocket's mission is to become the world’s largest Internet platform outside of China and the United States. Rocket identifies and builds proven internet business models and transfers them to new, underserved or untapped markets where it seeks to scale them into market leading online companies.
Rocket is focused on online business models that satisfy basic consumer needs across three sectors: e-Commerce, marketplaces and financial technology.
Rocket started in 2007 and now has more than 20,000 employees across its network of companies, which operate in more than 100 countries on five continents.
Press Contact Holtzbrinck Ventures:
Tel: +49 89 2060 7750
Press Contact Rocket Internet:
Head of PR & Communications
Tel: +49 30 300 13 18 68
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About Rocket Internet
Rocket Internet builds and invests in Internet companies that take proven online business models to new, fast-growing markets. Rocket Internet focuses on five industry sectors of online and mobile retail services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise, Home & Living and Travel. Its network of companies conducts business in a large number of countries around the globe with more than 36,000 employees at the end of 2015. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information visit www.rocket-internet.com.
Our e-commerce companies include retail companies in the areas of fashion, general merchandise, home and living, office supplies and food and groceries. Our marketplace companies seek to displace traditional supply chains by creating venues where buyers and sellers can transact directly, and include real estate and car online classifieds, travel and transport, and food delivery companies. Our third sector, financial technology, includes companies that focus on bringing together borrowers and lenders in regions and segments that are underserved by traditional banks, particularly in the consumer and small and medium-sized enterprise segments, and on facilitating payments. Our travel companies seize opportunities in the rapidly growing online travel and transport sector. They focus currently on vacation packages and online travel booking.
As part of our global strategy, we have created regional Internet groups in Africa, Asia Pacific and the Middle East in order to bundle local market and business model insights, facilitate regional commercial, strategic and investment partnerships, in particular with mobile telecommunication providers, enable local recruiting and sourcing and accelerate the regional rollout of our companies. We have developed proprietary technology where we believe it provides our companies with a competitive advantage. Our proprietary technology is highly flexible and scalable and provides our companies with significant cost and speed advantages, particularly during their initial rapid launch and rollout processes.
Our platform has enabled us to build a large, global network of companies and has historically put us in a position to launch more than 10 new companies every year through application of a standardized business model identification and development process. Every new company that we start accelerates the virtuous circle of synergy creation among our companies. The larger the size of our network of companies, the more significant our opportunity is to benefit from synergies and network effects with respect to our suppliers, solution providers, customers and employees.