Rocket Internet’s Wimdu rumoured to be struggling to find buyers

Michelle Kuepper 2013-01-29 3

Berlin-based peer-to-peer accommodation service and Rocket Internet portfolio company Wimdu is causing the company builder strife, according to online magazine Focus.

According to Focus, industry insiders say potential investors have been put off due to the tough competition from US rival Airbnb.

Wimdu founders Arne Bleckwenn and Hinrich Dreiling

The incubator is reported to be looking for buyers for the accommodation site but so far no one is biting. This is likely to be of concern for the Samwer brothers, who invested $90m in Wimdu via Rocket Internet along with main investors Kinnevik in November 2011 shortly after the startup launched.

Rocket Internet was unavailable for comment on the matter.

Wimdu was founded by serial entrepreneurs Arne Bleckwenn and Hinrich Dreiling and is available across Europe, along with Asia, North and South America. So far, Wimdu has struggled to compete with market leader Airbnb, which is going from strength to strength, expanding to 192 countries worldwide since starting up in San Fransisco in 2007.

Meanwhile, Wimdu has already suffered setbacks in its expansion – in August 2012, Wimdu announced it was trimming its international offices and shortly after launching in 2011, 50 staff members were let go due to too-rapid growth post-launch.

Is there too much competition in Germany?

The peer-to-peer accommodation industry is becoming increasingly crowded in the German marketplace. According to Focus, Stephan Uhrenbacher’s 9flats, another German clone of Airbnb, is a competitor that is also struggling to find buyers, after receiving a two-figure million funding round from T-Venture.

Berlin-based Roomsurfer (which last week announced a fresh funding round) is another startup tapping into the peer-to-peer accommodation market, though it provides a social element, bringing travellers with similar interests together.

HouseTrip, another leading European player based in London, Lausanne and Lisbon, is also available in Germany.

Within this context of competition, it wouldn’t surprise if Wimdu failed to provide the big exit the Samwers were hoping for…

For related posts, check out

22 business lessons that founders can learn from Oliver Samwer
HouseTrip raises $40m from Accel, Balderton, Index Ventures
Airbnb rival Wimdu confirms cuts to international offices, refocus on Berlin

VN:F [1.9.20_1166]
Rating: 2.5/5 (4 votes cast)
Rocket Internet's Wimdu rumoured to be struggling to find buyers, 2.5 out of 5 based on 4 ratings

All images in this article are subject to the Creative-Commons-Lizenz (credit - no editing, CC BY-ND , link to the legally-binding license agreement). Excluded are pictures that are labelled differently, including from Panthermedia, Fotolia, Pixelio, Morguefile, along with press photos or publishers' own visual material.

Comments

comments