Zalando will become a European Company from the summer onwards, as it is the best judicial form a young online enterprise could have, it believes.
First step towards IPO?
Zalando had transformed into a joint-stock company several months ago, but that move was merely a necessary sidestep to becoming a European company, which will probably take another several months.
The new judicial shape indicates that Zalando has become a real pan-European company, which is not surprising as more than half of its turnover is gathered outside of its home market, Germany. On top of that, it managed a 50 % turnover increase in 2013, to 1.8 billion euro.
It will also allow Zalando to prepare its IPO, despite CEO Rubin Ritter's statements that the company will not make that move anytime soon. He believes the entry into the stock exchange is only a viable option if and when it can be considered a positive step for the company.
Zalando's worth has recently been valued at 3.7 billion euro and the company has indeed managed to get a huge turnover increase in 2013, but still operates at a loss.