German retail giant Tengelmann is taking a new step into the online furniture business with an investment worth millions of euros in shopping club Westwing.
As part of the “double-digit million” deal, Tengelmann has received a stake of nearly eight per cent, Der Spiegel reported on Sunday. In June 2013, Westwing claimed to have reached eight million registered members across Brazil, Europe and Russia and annualised turnover of $175m (about €130m).
Westwing co-CEO Philipp von Plato said in June that the two-year-old company planned to become profitable “in the next year”.
Westwing has previously collected about €75m from investors including Rocket Internet (the Berlin-based internet company builder founded by Germany’s Samwer brothers), Summit Partners, Kinnevik, Holtzbrinck and Point Nine Capital.
Tengelmann Ventures and regular partner Rocket Internet have teamed up behind at least 12 other ventures, including now-defunct online furniture shop Mebelrama.
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