Rocket Internet slashes Home24 valuation in funding round

Reuters News
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Posted: Sep 07, 2016 12:59 PM

BERLIN (Reuters) - German e-commerce investor Rocket Internet said on Wednesday the valuation of its Home24 online furniture business had been more than halved in a financing round that raised 20 million euros ($22.5 million) of new capital.

Rocket Internet said in a statement that Home24's valuation had been cut to 420 million euros in the funding round in which other investors including Baillie Gifford and Kinnevik also participated, down from a previous 981 million.

Rocket's direct and indirect stake will be 42.9 percent after the transaction.

Rocket last week announced it made a first-half loss of 617 million euros ($691 million) after heavy writedowns on companies in its portfolio, in particular the Global Fashion Group.

(Reporting by Emma Thomasson; editing by David Clarke)