Business, Investments

Rocket Internet and Zalando to Unveil IPO Plans in September

Update: Rocket Internet has confirmed that it is going public with a USD 970 million IPO in Germany this year.

Berlin-headquartered Internet incubator-cum investor, Rocket Internet and Online Fashion retailer, Zalando, are looking to announce the plans for Initial Public Offerings (IPO), via Frankfurt stock exchange, reports TOI. The plan is expected to be revealed in the first half of September.

Both companies were seeking to secure funding: Zalando planned to raise around USD 1.2 billion and Rocket Internet was looking for around USD 1.1 billion. Post this move, Rocket Internet plans to use the raised funds for technology & emerging market and Zalando is looking to expands its operations in Europe.

samwer-brothers-720x480Image Source: TechinAsia

According to Reuters, Zalando is holding an investor presentation on its business next Thursday, and Rocket Internet is likely to list stakes of around 15 percent each by selling new shares.

The other player in this space include Alibaba, which went in IPO for more than USD 15 billion, and close to Facebook’s USD 16 billion initial offering in 2012.

Rocket Internet was launched in 2007, as a venture of Samwer brothers (Marc, Oliver and Alexander), operate a network of 25 international Rocket offices, covering all relevant developed and emerging markets. It had invested in 24 companies and consisting of 500 employees in its current team.

See Also: Internet incubator Rocket Internet plans to raise USD 4 billion via IPO in Frankfurt

Last July, the firm had secured USD 500 million in a fresh round from AB Kinnevik and Access Industries. This year, in April, the firm had raised USD 7 million led by Tengelmann Ventures and Doha-headquartered telecom provider Ooredoo formed a 50-50 joint venture (JV) with Rocket Internet to create and develop businesses across online retail, marketplaces and payment services in Asia. Earlier this month, it had received USD 445 million in Private Equity funding.

Berlin-based, Zalando was established in 2009 and also has been incubated by Rocket Internet. It is an e-commerce start up selling shoes, clothing and other fashion and lifestyle products online. It had secured 5 round of investment and raised over USD 243 million. The firm is backed by 9 investors including J.P. Morgan, DST Global, Commerzbank, Quadrant Capital Advisors and much more.

The firm has expanded to 1,500 different shoe and fashion brands in 15 European markets and posted sales of 520 to 560 million euros in the second quarter.

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