Another Rocket Internet company sees its valuation halved
September 12, 2016
Home24, an online shop for home & living products, had its valuation cut in half last week by German startup investor Rocket Internet (FRA: RKET). Home24 raised a €20 million round at a valuation of €420 million, a stark drop from its valuation after a €15.9 million financing in December 2014.
So continues an emerging trend for Rocket Internet's plentiful portfolio. A little over a month ago, Global Fashion Group, an online fashion business established by Rocket Internet in 2011, revealed it had added €30 million to a previously announced round. The attached €1.1 billion valuation represented a cut of more than 50% from what it garnered with a previous financing.
Rocket Internet is often criticized for its business model of copying successful startup ideas and applying them to new geographies. It’s not hard to see why some object to its practices.