German-based Online fashon e-commerce Zalando has raised €40.7m ($53.1m) in a debt-financing deal with banking and financial services company Commerzbank, Sparkasse Mittelthüringen and German government-owned development bank KfW Bankengruppe.
Zalando is backed by Tengelmann’s corporate venturing unit and other corporate-linked groups. In February, Zalando raised an undisclosed amount selling a 4% stake to DST Global, the venture fund of Russian businessman Yuri Milner. Its other investors include Tengelmann Ventures, Holtzbrinck Ventures, the former corporate venturing unit of Georg von Holtzbrinck Publishing Group, investment firm Kinnevik, Rocket Internet, run by German businessmen the Samwer brothers.
In 2011 Zalando reported an operating loss despite €510m turnover, citing “strong growth and geographical expansion”.
The new funds will be used to cover operational costs and equip its new logistics centre as the company continues to expand.
Earlier this year Zalando raised an undisclosed amount from J.P. Morgan Asset Management and Quadrant Capital Advisors with both backers now owning around 1% of the company.