Kinnevik participates in Lazada financing round

1 Dec 2014, 8:00 AM

Investment AB Kinnevik (publ) ("Kinnevik") today announced it has invested EUR 8m in Lazada as part of a EUR 200m financing round led by Temasek and with participation by Rocket Internet, Kinnevik, Verlinvest and other existing investors.

Lazada operates Southeast Asia's number one online shopping mall. Since its operational launch in 2012, Lazada has expanded rapidly with operations in six countries - Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam - as well as a sourcing center in Hong Kong that drives cross-border marketplace activities.

The strong growth momentum has continued this year with sales on Lazada's websites and mobile applications approximately doubling since June 2014. A key driver of the growth has been Lazada's Marketplace, a platform for third-party merchants. With Marketplace sales increasing more than 10 times since January 2014, the platform now accounts for approximately 70% of Lazada's overall monthly sales.

Kinnevik's CEO Lorenzo Grabau commented:

"Lazada's performance this year, and its convincing transition to a marketplace model confirms our conviction in the company. We are delighted to welcome Temasek as a fellow shareholder in Lazada. Temasek is an investment company based in Singapore with a significant presence in the region, and we look forward to working with them."

Lazada is valued at EUR 957.8m (or EUR 1 billion considering 100% of Lazada's business) post this investment round and Kinnevik's stake will be 9.5%. As reported in the interim management statement as per 30 September 2014, the difference between the book value and the value applied in the latest transactions in the unlisted portfolio amounted to SEK 2.2 billion as per 30 September. Had the equity value implied by today's transaction been applied as the latest transaction value of Lazada as per 30 September 2014, this difference would have been approximately SEK 300m higher.

For further information, visit www.kinnevik.se or contact:

Torun Litzén, Director, Investor RelationsPhone +46 (0)8 562 000 83
 Mobile +46 (0)70 762 00 83

Investment AB Kinnevik is a leading, long-term oriented, investment company based in Sweden. Kinnevik primarily invests in consumer centric businesses that provide innovative and value-added technology-enabled services. Our main areas of focus are the Communications, e-Commerce, Entertainment and Financial Services sectors. We own significant stakes in over 50 companies that operate in more than 80 countries across five continents, with a particular emphasis on growth markets. The Kinnevik Group employs more than 90 000 people around the world.

Kinnevik actively supports the companies in which it invests and plays an influential role on their respective Boards. Kinnevik was founded in 1936 by three Swedish families who continue to play a leadership role in the ownership of the Company and in the pursuit of its entrepreneurial ventures.

Kinnevik's shares are listed on Nasdaq OMX Stockholm's list for large cap companies under the ticker codes KINV A and KINV B.