Holtzbrinck exits seven companies for Rocket Internet stake

Harriet Bailey
22 August 2014

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Holtzbrinck Ventures, a long-time investor in Rocket Internet companies, has exchanged its entire stake in seven of Rocket’s e-commerce businesses for a 2.5% stake in Rocket itself.

The transaction provides the venture capital company with a Rocket stake ahead of its planned IPO.

Holtzbrinck has exited German home and living businesses Home24 and Westwing, as well as food delivery company HelloFresh. According to unquote" data, Holtzbrinck acquired stakes in these companies in 2012.

It has also exited stakes in non-German fashion businesses Lamoda, Dafiti, Jabong and Namshi. All stakes were valued on the basis of the last external funding round. Holtzbrinck has invested in more Rocket Internet-incubated companies than any other external investor.

The transaction is in line with Rocket's intention to own larger stakes in the companies it has developed.

Holtzbrinck has been issued with shares of the same class and with the same rights as held by current investors.

Rocket has been valued at approximately €4.3bn and is said to be planning to float on the Frankfurt Stock Exchange in the coming months. United Internet bought a 10.4% stake in Rocket Internet for €435m in cash and assets earlier this week.

Investment AB Kinnevik owns an 18.1% stake in Rocket, while Access Industries and PLDT own 8.3% and 8.4% respectively. Global Founders Fund owns the largest Rocket Internet stake, at 52.3%. Global Founders Fund is owned by Rocket Internet owners the Samwer brothers.

Holtzbrinck has previously invested in companies including Groupon, Zalando and Delivery Hero.

Company
Founded in 2011 and headquartered in Munich, Westwing is an e-commerce site offering furnishings and home decor items. It has 1,100 employees in eight countries and operates on three continents. Westwing's 2013 revenues stood at €110m, three times the 2012 turnover of €41m. A third of the sales are conducted on mobile devices.

Established in 2009, Home24 offers the end consumer a wide variety of high-quality products in the home and furniture segment. Based in Berlin, Germany, the firm is a subsidiary of FP Commerce.

Founded in 2012 and headquartered in Berlin, HelloFresh serves one million meals per month across Germany, Austria, the US, the UK, Australia and the Netherlands. The start-up has a presence in 75% of the US and plans to expand westwards.

People
Martin Weber is general partner of Holtzbrinck. Oliver Samwer is co-founder and CEO of Rocket.