Corporate-backed internet incubator and venture firm Rocket Internet has received its second large investment in just over a week, securing €435m ($580m) from internet services provider United Internet on Friday.
The transaction consisted of €333m ($445m) in cash and a €102m ($136m) equity investment in the portfolio of Global Founders Capital, a portfolio of more than 50 investments now jointly held by United and Global Founders Fund, the investment vehicle for Rocket Internet founders the Samwer Brothers.
Global Founders Fund will also convert its stake in Global Founders Capital, valued at €153m ($204m), to new shares in Rocket Internet, meaning it now holds a 53.7% stake in the incubator.
United took a 10.7% stake in Rocket, boosting its post-money valuation to €4.3bn ($5.73bn). The deal also dilutes the share held by telecommunications company PLDT, which paid $446m for a 10% stake earlier this month, to 8.6%.
Other shareholders in Rocket are investment firm Kinnevik, which owns 18.5% of the firm, and conglomerate Access Industries, which holds an 8.5% stake after investing $400m in July 2013.
Ralph Dommermuth, United Internet’s chief executive, will also become a member of Rocket’s nine-person supervisory board in conjunction with the funding.