Rocket Internet, Kinnevik and Holtzbrinck Ventures have invested another 20 million euro into online furniture seller Home24. Its current CEO, Domenico Cipolla, will be replaced by a duo.
More returning customers required
Marc Appelhoff and Christoph Cordes will lead the online retailer from now on and are familiar with the business: Home24 bought their previous venture, Fashion for Home, but now they have been given the reins of their new parent company.
The 20 million euro investment will be used to turn the tide for the onerous company, in an attempt to become profitable at last. Last year, Home24 managed a 250 million euro turnover and one million active customers, but that did not prevent it from making a loss. Shareholders are now looking for ways to get customers to return because attracting new customers is too costly and has its negative effect on the results. Apparently, Home24 also has a customer service issue, as many people complain about this particular part of the company.
Home24, founded in 2009, is currently available in several European countries and Brazil. It is one of Rocket Internet's most important companies and managed to attract 120 million euro in investments over the past few years.