Rocket Internet Receives €333M Investment from Philippine Long Distance Telephone Company

rocket internet1Rocket Internet AG, the Berlin, Germany-based Internet startup incubator, received a €333m investment from Philippine Long Distance Telephone Company (PLDT) (PSE:TEL) (NYSE:PHI), a Philippines-based telecoms operator.

Under the terms of the partnership agreement, PLDT will acquire a 10% stake in Rocket in new shares. It will hold the right to appoint one member of Rocket’s nine person Supervisory Board and will fund the investment from available cash and new debt. PLDT joins Investment AB Kinnevik and Access Industries as the third external investor in Rocket, in addition to Global Founders GmbH (formerly: European Founders Fund GmbH).

Along with the investment, the two companies have also entered into a global strategic partnership to drive the development of online and mobile payment solutions in emerging markets. The deal will leverage PLDT’s experience and intellectual property in mobile payments and remittance platforms as well as Rocket’s global technology platform to provide products and services for the “unbanked, uncarded and unconnected” population in those countries.

Led by Oliver and Mark Samwer, Rocket provides a platform for the creation and scaling of consumer internet businesses outside the U.S. and China. It has more than 20,000 employees in its network of companies across over 100 countries, with aggregated revenues in excess of €700m in 2013. Brands include Zaloram Lazada, Dafiti, Linio, Jumia, Namshi, Lamoda, Jabong, Westwing, Home24 and HelloFresh.

PLDT’s wireless subsidiary, Smart Communications Inc., is a global developer of mobile banking and mobile wallet services including online money transfers, payments, disbursement, banking and security. Smart eMoney, a mobile money subsidiary, co-developed and operates a global mobile payments platform of MasterCard, and, is now working with Citibank and VISA to develop new innovative financial services.

FinSMEs

11/08/2014

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