Delivery Hero takes home €387M as possible IPO looms
May 16, 2017
South African internet and entertainment group Naspers (JSE: NPN) has agreed to invest €387 million for a minority stake in Delivery Hero, a food-delivery business backed by Rocket Internet (FRA: RKET). Naspers says the deal will be conducted 'at a valuation in line with Delivery Hero's previous valuation', a reported $3.1 billion figure from a 2015 round, and brings the company's total funding raised to nearly $1.5 billion.
The investment comes mere weeks after Delivery Hero confirmed plans to go public, perhaps during 2017; with nearly €400 million in fresh funding, though, it now seems less likely the company plans to conduct an IPO any time too soon. On the other hand, Rocket Internet desperately needs some of its portfolio companies to float this year, according to analysts at Barclays, and Delivery Hero may be the best option. In April, Rocket Internet reported a net loss of €741.5 million for 2016, more than triple its 2015 losses.