• Germany's news in English

Online shop Zalando bags record investment

The Local · 19 Oct 2012, 10:53

Published: 19 Oct 2012 10:53 GMT+02:00

Facebook Twitter Google+ reddit

Kinnevik, a Swedish investment company which specialised in small to mid-sized companies with growth potential, now owns 26 percent of Zalando. Its recent investment of €287 million bought it a further 10 percent of the business, the Financial Times Deutschland newspaper said on Friday.

It has been buying into in the online retailer since 2009, said head of Kinnevik's board Mia Brunell Livors. “Since then we have been following the company's roaring success.”

It has not been plain sailing for Zalando, which is expected to list a turnover of €1.0 billion for 2012.

It has lost money for the last two years despite attracting more venture capital than any other German online business.

But with a rapid expansion on the cards, and websites up and running in 14 different countries – including France, UK and Spain, Kinnevik said that it wanted to play an active role in further expansion.

Brunell Livors, who as a member of the advisory board for hugely successful high-street label H&M is no stranger to the business of fashion, said Zalando was one of the most successful online shops in Europe.

The new 10 percent that Kinnevik now owns formerly belonged to Holtzbrinck Ventures, Tengelmann Ventures and Rocket Internet – all German companies. Rocket still owns 44 percent of the firm though, making it the biggest shareholder.

Run by three brothers, Marc, Oliver and Alexander Samwer, Rocket Internet was where Zalando begun. It incubates new start-ups until they are ready to operate independently and it is the biggest firm of its kind. Zalando could be the first of their protégé companies to list on the stock market.

Other companies with a share in the Zalando include Russian investors Digital Sky Technology, who this year bought nine percent. It also owns shares in Facebook and Twitter.

Story continues below…

Over the summer, the company received €40.7 million in loan capital from Commerzbank and a central Thuringia Sparkasse bank. In the first half of 2012, it reported net sales of €471 million.

The Local/jcw

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

15:06 October 19, 2012 by catjones
Be careful out there children, Amazon lives down the block.
13:36 October 22, 2012 by blackboot11
'It (Zalando) has lost money for the last two years despite attracting more venture capital than any other German online business.'

Brunell Livors said, ' Zalando was one of the most successful online shops in Europe.'

What is wrong with the logic in these 2 statements from the above article?
Today's headlines
Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German town, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

Student fined for spying on women via their webcams
Photo: DPA

Student from Munich fined €1,000 for spying on 32 different computers, using their webcams to take photographs, or record their keyboard history.

This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd