Kinnevik has finally lost patience. The Stockholm-based investment firm on Wednesday evening announced it was pulling a big chunk of its stake in Berlin-based startup incubator Rocket Internet.
It’s a massive blow to a company that has long been one of the biggest hopes for Germany’s capital, which has sought to sell itself as a hub for promising technology startups along the likes of Silicon Valley in the United States.
Shares in Rocket Internet, which went public to much fanfare back in 2014 but has long failed to earn a profit, plunged by more than 10 percent to €19.59 in post-day trading on Frankfurt’s stock exchange Wednesday night. On Thursday it plunged 14 percent to €18.35 over the course of the day.
Kinnevik was Rocket Internet’s largest investor outside of its founders Oliver, Marc and Alexander Samwer, owning a 13-percent stake in the company, which is best known for launching Europe’s largest online fashion retailer Zalando.