Telecom network operator Philippine Long Distance Telephone (PLDT) paid €333m ($446m) for a 10% stake in Rocket Internet yesterday, valuing the Germany-based internet incubator at almost $4.5bn.
Founded in 2007, Rocket acts as an incubator for businesses seeking to take existing e-commerce models to other markets. It started the process in Europe before expanding to Latin America, Africa and Asia.
PLDT will have the right to appoint a member to Rocket’s board and will be the third external investor in the firm, after Sweden-based investment firm Kinnevik and US-based conglomerate Access Industries.
Rocket and PLDT will also partner in developing mobile payment services in emerging markets.
Smart Communications, a PLDT subsidiary, already works extensively in mobile banking and wallet services, introducing several innovations to less developed economies. Rocket has two companies, Payleven and Paymill, which operate in the payment services sector, but it is not currently one of their key markets.
Rocket Internet CEO Oliver Samwer said: “Strategic partnerships are a core part of Rocket’s strategy to provide great services to consumers and rapidly roll out new Internet based business models across diverse geographies.
“Financial technology is a key focus sector for Rocket and this partnership will allow us to build on PLDT’s world-class innovations in mobile money and micro-payments and accelerate the delivery of those solutions around the world.”
Rocket had beeen rumoured to be planning an initial public offering later this year at a valuation of approximately $4.1bn but it is not known whether the firm will still seek to go public after raising so much cash.