Incubator firm Rocket Internet has sold its majority stake in peer-to-peer lender Lendico to Arrowgrass, Handelsblatt has learned, as the British hedge fund acquired complete ownership of the Berlin startup.
The partners to the transaction agreed to keep the purchase price confidential. Rocket Internet, which specializes in helping online startups get off the ground, most recently valued its 50-percent-plus stake in Lendico at €140 million ($159 million). Rocket, a public company, sold peer-to-peer lender Zencap to Britain’s Funding Circle two years ago.
As an incubator, Rocket Internet invests in internet-based companies and provides operational support, helping them scale internationally. Rocket Internet had founded Lendico, an online marketplace for business and consumer lending, in 2013.
Lendico co-founder Dominik Steinkühler welcomed the acquisition by Arrowgrass, which acquired a 7-percent stake in the Berlin firm in 2015, as a “seal of approval.”