Bertelsmann has further expanded its global network of start-up investments. Last year, the international media, services and education group made more than 70 investments worldwide, through the funds bundled in its Bertelsmann Investments division. At the same time, the company completed a number of exits, and profits from the disposal of these investments – most notably by the Bertelsmann Asia Investments (BAI) fund in China – made an appreciable contribution to Group net income. Overall, at the end of the year Bertelsmann had holdings in more than 160 innovative start-ups and investment funds.
Thomas Rabe, Chairman and CEO of Bertelsmann, said: “Investments in young digital companies with innovative business models play an important role in the implementation of our strategy. With these investments, we ensure the transfer of knowledge, about digital trends that support us in the transformation, as well as about promising markets. We have massively expanded our network of start-up holdings in recent years, especially in our strategic growth regions of China, India and Brazil, and have repeatedly demonstrated that we are an ideal partner for innovative founders who want to expand their activities.”
The approximately 70 investments in start-ups and investment funds that Bertelsmann made in 2017 included participations in the education provider Eruditus in India, the bike-sharing app Mobike in China, and the video company Wibbitz in the U.S. In Brazil, the Group, together with its partner Bozano Investimentos, increased its stake in Medcel, a provider of prep courses for medical students. Most of the start-ups operate in lines of business that are very relevant for the Group, including innovative media offerings, services in the area of
e-commerce, and education.
The corporate division was especially successful in China last year. BAI – which the Chinese business magazine “CBN Weekly” once again named as one of the country’s best venture capital funds in 2017 – supported the IPOs of four of its holdings: In September, the premium lifestyle platform Secoo debuted on the New York technology exchange Nasdaq; in November, the online and financial services provider Yixin Group went public on the Hong Kong Stock Exchange. In December, two other BAI investments had their initial public offering on Nasdaq: the fintech company Lexin, and the digital marketing platform iClick.
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