VC-backed Home24 to raise €150-200m in IPO

Oscar Geen
18 May 2018

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VC-backed Home24 has announced its intention to float on the Frankfurt Stock Exchange, with the goal of raising €150-200m IN expansion capital.

VC firms Rocket Internet and Kinnevik hold stakes of 41% and 17% in the business, respectively, according to a statement. None of the existing shareholders plan to divest their shares in the IPO.

The fresh capital will be used to fund the integration of the company's delivery chain, as well as to invest in property, equipment and technology, and pay down debt.

Berenberg, Citigroup and Goldman Sachs International are acting as joint global coordinators and joint bookrunners for the flotation, which will take place on the Frankfurt stock exchange. The date has not yet been set.

Rocket Internet, Kinnevik and Holtzbrinck took part in a seed round for Home24 in May 2012.

Holtzbrinck divested its stake in the business along with its stakes in six other portfolio companies to Rocket Internet in August 2014 in exchange for a 2.5% stake in Rocket Internet itself.

Rocket Internet and Kinnevik also took part in a further €20m funding round in April 2016, alongside unnamed new investors.

Home24 is an online furniture store based in Berlin. The company's platform combines two distinct business models. Its third-party and white-label business offers products for the home and living markets. These items are usually not kept in stock by Home24, minimizing inventory risk. It also runs a private-label business, which features the bestsellers from other manufacturers.

The company increased its revenues to €85m in the first quarter of 2018, which corresponds to a growth rate of 30% year-on-year. For the same period, it reported an adjusted EBITDA margin of -6%, up from -32% in 2015.