Rocket Internet closes new $420m fund

German juggernaut Rocket Internet announced today that it has closed funding for a brand new fund worth US$420 million spread across its global network of companies. Rocket Internet itself invested US$50 million, with the rest of the cash coming from varied investor groups, including pension funds, asset managers, insurance companies, and high net worth individuals.

Specific investor details were not disclosed.

The fund will, in its entirety, be managed by Rocket Internet, thereby helping portfolio companies access capital easily and without approval from co-investors. The timing of the fund comes just days after rumors of fallout between Rocket Internet CEO Oliver Samwer and Swedish investor Kinnevik, which owns 13 percent of the company. Disagreements between the two reportedly led to scrapping of a mooted IPO for one of the portfolio companies – Hellofresh.

“The fund will optimize further the funding process for our portfolio companies,” said Oliver, in a statement. “Our companies will have access to more capital and be less reliant on individual co-investors, thereby allowing them to fund in a faster and more efficient manner. This will greatly enhance the entrepreneurial flexibility of our portfolio companies.”

None of the cash from this new pool will be used in seed funding rounds, according to the statement. Hence, it’s likely that the fund is aimed at accelerating growth in Rocket’s key markets of Southeast Asia, Africa, and Eastern Europe.

Rocket Internet says the fund is set up for a minimum of 9 years. Further commitments are expected in due course, because of “strong investor interest.”

The German firm has continued its aggressive growth trajectory in recent months, despite the setback of taxi-hailing startup EasyTaxi exiting from Asia. Multiple ventures have popped up, including Vaniday, Zenrooms, and Sparklist.