BERLIN (Reuters) - German online retailer Home24, which wants to challenge IKEA’s dominance of the European furniture market, accelerated sales and trimmed its losses in the fourth-quarter after sources said it is considering a stock market listing.
Home24, in which ecommerce investor Rocket Internet (RKET.DE) holds a 43 percent stake, said quarterly sales rose 21 percent to 80 million euros ($98 million), picking up from a 10 percent rise in the first nine months of the year.
Its adjusted loss before interest, depreciation and amortization (EBITDA) narrowed to 4 million euros.
Launched in 2009 in Berlin, the company delivers furniture in seven European markets, plus Brazil. It said on Monday that its Latin American region was the first to reach breakeven in the fourth quarter on an adjusted EBITDA basis.
Home24 is expected to publish an intention to float in May or June, with the offer volume seen at 100 million-200 million euros, sources told Reuters last week, potentially valuing the whole company at 500 million-600 million euros.
Home24 had hoped that online sales of furniture would grow as fast as those of fashion, but the business has been relatively slow to take off and big brick-and-mortar players such as IKEA are now investing heavily in ecommerce.
When Home24 last raised capital in 2016, its valuation was slashed by more than half to 420 million euros. Other investors include Sweden’s Kinnevik (KINVb.ST) and Edinburgh-based fund manager Baille Gifford.
Rocket Internet last year listed its two biggest investments, online food sites HelloFresh (HFGG.DE) and Delivery Hero (DHER.DE) and both have since seen their share prices soar.
Reporting by Emma Thomasson; Editing by Tom Sims and Louise Heavens