AAA Rocket Internet to form $1.1bn growth fund

Rocket Internet to form $1.1bn growth fund

Germany-based e-commerce group Rocket Internet is raising a €1bn ($1.1bn) growth equity fund, WirtschaftsWoche reported on Thursday.

Rocket Internet co-founder and CEO Oliver Samwer will act as the fund’s sole general partner, according to Deutsche Startups.

Founded in 2007 by Samwer and his brothers Marc and Alexander, Rocket Internet operates as a holding company that launches startups with similar e-commerce business models in different regions across the world.

News of the fund comes 10 months after Rocket Internet went public in an October 2014 initial public offering that valued it at approximately $8.2bn. Its share price has dropped from €42.50 to under €30 since then, but the company is continuing to expand its operations.

Part of the expansion has involved dividing several of its startups into themed groups it co-owns with other investors including investment firm Kinnevik.

Five of Rocket Internet’s fashion and lifestyle e-commerce companies, including Dafiti, Jabong and Lamoda, were absorbed into the Global Fashion Group, while Global Online Takeaway Group combines food-based companies including online food ordering services Delivery Hero and FoodPanda.

The prospective growth equity fund would enable Rocket Internet to make more investments in externally-developed companies in order to consolidate and augment its own businesses. It would also be able to pump more money into its companies without having to take them public.

Global Fashion Group, Delivery Hero, meal delivery service HelloFresh, and furniture e-commerce companies Westwing and Home24 are reportedly considering IPOs in the near future.

Marc and Oliver Samwer are also partners in Global Founders Capital, a stage-agnostic venture capital fund that launched in early 2013 with €150m of capital.

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